Correlation Between SLR Investment and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both SLR Investment and CanSino Biologics 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 CanSino Biologics 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 CanSino Biologics, you can compare the effects of market volatilities on SLR Investment and CanSino Biologics 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 CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and CanSino Biologics.
Diversification Opportunities for SLR Investment and CanSino Biologics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SLR and CanSino is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics 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 CanSino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanSino Biologics has no effect on the direction of SLR Investment i.e., SLR Investment and CanSino Biologics go up and down completely randomly.
Pair Corralation between SLR Investment and CanSino Biologics
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.24 times more return on investment than CanSino Biologics. However, SLR Investment Corp is 4.15 times less risky than CanSino Biologics. It trades about 0.31 of its potential returns per unit of risk. CanSino Biologics is currently generating about -0.08 per unit of risk. If you would invest 1,542 in SLR Investment Corp on October 24, 2024 and sell it today you would earn a total of 74.00 from holding SLR Investment Corp or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. CanSino Biologics
Performance |
| Timeline |
| SLR Investment Corp |
| CanSino Biologics |
SLR Investment and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and CanSino Biologics
The main advantage of trading using opposite SLR Investment and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, CanSino Biologics 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 CanSino Biologics will offset losses from the drop in CanSino Biologics' long position.| SLR Investment vs. PLAYWAY SA ZY 10 | SLR Investment vs. ePlay Digital | SLR Investment vs. InPlay Oil Corp | SLR Investment vs. Universal Display |
| CanSino Biologics vs. Boyd Gaming | CanSino Biologics vs. HOCHSCHILD MINING | CanSino Biologics vs. BANK OF CHINA | CanSino Biologics vs. United Insurance Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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