Correlation Between SLR Investment and ANGLO ASIAN
Can any of the company-specific risk be diversified away by investing in both SLR Investment and ANGLO ASIAN 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 ANGLO ASIAN 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 ANGLO ASIAN MINING, you can compare the effects of market volatilities on SLR Investment and ANGLO ASIAN 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 ANGLO ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and ANGLO ASIAN.
Diversification Opportunities for SLR Investment and ANGLO ASIAN
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLR and ANGLO is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and ANGLO ASIAN MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLO ASIAN MINING 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 ANGLO ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLO ASIAN MINING has no effect on the direction of SLR Investment i.e., SLR Investment and ANGLO ASIAN go up and down completely randomly.
Pair Corralation between SLR Investment and ANGLO ASIAN
Assuming the 90 days horizon SLR Investment is expected to generate 2.04 times less return on investment than ANGLO ASIAN. But when comparing it to its historical volatility, SLR Investment Corp is 2.71 times less risky than ANGLO ASIAN. It trades about 0.13 of its potential returns per unit of risk. ANGLO ASIAN MINING is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 124.00 in ANGLO ASIAN MINING on November 3, 2024 and sell it today you would earn a total of 6.00 from holding ANGLO ASIAN MINING or generate 4.84% 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. ANGLO ASIAN MINING
Performance |
| Timeline |
| SLR Investment Corp |
| ANGLO ASIAN MINING |
SLR Investment and ANGLO ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and ANGLO ASIAN
The main advantage of trading using opposite SLR Investment and ANGLO ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, ANGLO ASIAN 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 ANGLO ASIAN will offset losses from the drop in ANGLO ASIAN's long position.| SLR Investment vs. ANTA SPORTS PRODUCT | SLR Investment vs. NTG Nordic Transport | SLR Investment vs. Avanos Medical | SLR Investment vs. Fukuyama Transporting Co |
| ANGLO ASIAN vs. PEPTONIC MEDICAL | ANGLO ASIAN vs. ADRIATIC METALS LS 013355 | ANGLO ASIAN vs. ONWARD MEDICAL BV | ANGLO ASIAN vs. Merit Medical Systems |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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