Correlation Between SLR Investment and Traton SE
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By analyzing existing cross correlation between SLR Investment Corp and Traton SE, you can compare the effects of market volatilities on SLR Investment and Traton SE 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 Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Traton SE.
Diversification Opportunities for SLR Investment and Traton SE
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SLR and Traton is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE 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 Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of SLR Investment i.e., SLR Investment and Traton SE go up and down completely randomly.
Pair Corralation between SLR Investment and Traton SE
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.86 times more return on investment than Traton SE. However, SLR Investment Corp is 1.16 times less risky than Traton SE. It trades about 0.1 of its potential returns per unit of risk. Traton SE is currently generating about -0.11 per unit of risk. If you would invest 1,530 in SLR Investment Corp on September 12, 2024 and sell it today you would earn a total of 48.00 from holding SLR Investment Corp or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Traton SE
Performance |
| Timeline |
| SLR Investment Corp |
| Traton SE |
SLR Investment and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Traton SE
The main advantage of trading using opposite SLR Investment and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Traton SE 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 Traton SE will offset losses from the drop in Traton SE's long position.| SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. SIVERS SEMICONDUCTORS AB |
| Traton SE vs. LANDSEA GREEN MANAGEMENT | Traton SE vs. Nordic Semiconductor ASA | Traton SE vs. Magnachip Semiconductor | Traton SE vs. NXP Semiconductors NV |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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