Correlation Between SLR Investment and Boeing
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Boeing 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 Boeing 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 The Boeing, you can compare the effects of market volatilities on SLR Investment and Boeing 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 Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Boeing.
Diversification Opportunities for SLR Investment and Boeing
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLR and Boeing is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing 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 Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of SLR Investment i.e., SLR Investment and Boeing go up and down completely randomly.
Pair Corralation between SLR Investment and Boeing
Assuming the 90 days horizon SLR Investment Corp is expected to generate 1.0 times more return on investment than Boeing. However, SLR Investment Corp is 1.0 times less risky than Boeing. It trades about 0.23 of its potential returns per unit of risk. The Boeing is currently generating about 0.05 per unit of risk. If you would invest 1,427 in SLR Investment Corp on August 30, 2024 and sell it today you would earn a total of 152.00 from holding SLR Investment Corp or generate 10.65% 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. The Boeing
Performance |
| Timeline |
| SLR Investment Corp |
| Boeing |
SLR Investment and Boeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Boeing
The main advantage of trading using opposite SLR Investment and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Boeing 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 Boeing will offset losses from the drop in Boeing's long position.| SLR Investment vs. ACCSYS TECHPLC EO | SLR Investment vs. TRADEGATE | SLR Investment vs. CARSALESCOM | SLR Investment vs. Vastned Retail NV |
| Boeing vs. COVIVIO HOTELS INH | Boeing vs. Calibre Mining Corp | Boeing vs. Sunstone Hotel Investors | Boeing vs. US FOODS HOLDING |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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