Correlation Between SLR Investment and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both SLR Investment and SHIP HEALTHCARE 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on SLR Investment and SHIP HEALTHCARE 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 SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and SHIP HEALTHCARE.
Diversification Opportunities for SLR Investment and SHIP HEALTHCARE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SLR and SHIP is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of SLR Investment i.e., SLR Investment and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between SLR Investment and SHIP HEALTHCARE
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.63 times more return on investment than SHIP HEALTHCARE. However, SLR Investment Corp is 1.6 times less risky than SHIP HEALTHCARE. It trades about 0.06 of its potential returns per unit of risk. SHIP HEALTHCARE HLDGINC is currently generating about 0.0 per unit of risk. If you would invest 1,438 in SLR Investment Corp on September 3, 2024 and sell it today you would earn a total of 123.00 from holding SLR Investment Corp or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| SLR Investment Corp |
| SHIP HEALTHCARE HLDGINC |
SLR Investment and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and SHIP HEALTHCARE
The main advantage of trading using opposite SLR Investment and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, SHIP HEALTHCARE 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE's long position.| SLR Investment vs. Blackstone Group | SLR Investment vs. BlackRock | SLR Investment vs. The Bank of | SLR Investment vs. Ameriprise Financial |
| SHIP HEALTHCARE vs. DEVRY EDUCATION GRP | SHIP HEALTHCARE vs. Titan Machinery | SHIP HEALTHCARE vs. CHINA EDUCATION GROUP | SHIP HEALTHCARE vs. United Utilities Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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