Correlation Between SLR Investment and Electrolux Professional
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Electrolux Professional 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 Electrolux Professional 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 Electrolux Professional AB, you can compare the effects of market volatilities on SLR Investment and Electrolux Professional 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 Electrolux Professional. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Electrolux Professional.
Diversification Opportunities for SLR Investment and Electrolux Professional
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between SLR and Electrolux is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Electrolux Professional AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrolux Professional 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 Electrolux Professional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrolux Professional has no effect on the direction of SLR Investment i.e., SLR Investment and Electrolux Professional go up and down completely randomly.
Pair Corralation between SLR Investment and Electrolux Professional
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.56 times more return on investment than Electrolux Professional. However, SLR Investment Corp is 1.79 times less risky than Electrolux Professional. It trades about 0.23 of its potential returns per unit of risk. Electrolux Professional AB is currently generating about 0.03 per unit of risk. If you would invest 1,491 in SLR Investment Corp on September 14, 2024 and sell it today you would earn a total of 103.00 from holding SLR Investment Corp or generate 6.91% 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. Electrolux Professional AB
Performance |
| Timeline |
| SLR Investment Corp |
| Electrolux Professional |
SLR Investment and Electrolux Professional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Electrolux Professional
The main advantage of trading using opposite SLR Investment and Electrolux Professional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Electrolux Professional 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 Electrolux Professional will offset losses from the drop in Electrolux Professional's long position.| SLR Investment vs. QBE Insurance Group | SLR Investment vs. Selective Insurance Group | SLR Investment vs. Summit Materials | SLR Investment vs. REVO INSURANCE SPA |
| Electrolux Professional vs. PACIFIC ONLINE | Electrolux Professional vs. SLR Investment Corp | Electrolux Professional vs. AOYAMA TRADING | Electrolux Professional vs. CARSALESCOM |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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