Correlation Between SLR Investment and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Amcor Plc at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SLR Investment and Amcor Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and Amcor plc, you can compare the effects of market volatilities on SLR Investment and Amcor Plc and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SLR Investment with a short position of Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Amcor Plc.
Diversification Opportunities for SLR Investment and Amcor Plc
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between SLR and Amcor is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc and SLR Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SLR Investment Corp are associated (or correlated) with Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of SLR Investment i.e., SLR Investment and Amcor Plc go up and down completely randomly.
Pair Corralation between SLR Investment and Amcor Plc
Assuming the 90 days horizon SLR Investment Corp is expected to generate 1.03 times more return on investment than Amcor Plc. However, SLR Investment is 1.03 times more volatile than Amcor plc. It trades about 0.19 of its potential returns per unit of risk. Amcor plc is currently generating about 0.11 per unit of risk. If you would invest 1,501 in SLR Investment Corp on September 13, 2024 and sell it today you would earn a total of 85.00 from holding SLR Investment Corp or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Amcor plc
Performance |
| Timeline |
| SLR Investment Corp |
| Amcor plc |
SLR Investment and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Amcor Plc
The main advantage of trading using opposite SLR Investment and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Amcor Plc can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amcor Plc will offset losses from the drop in Amcor Plc's long position.| SLR Investment vs. EVS Broadcast Equipment | SLR Investment vs. Summit Hotel Properties | SLR Investment vs. Park Hotels Resorts | SLR Investment vs. BROADSTNET LEADL 00025 |
| Amcor Plc vs. PennantPark Investment | Amcor Plc vs. DIVERSIFIED ROYALTY | Amcor Plc vs. Spirent Communications plc | Amcor Plc vs. Cogent Communications Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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