Correlation Between SLR Investment and Comba Telecom

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Comba Telecom 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 Comba Telecom 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 Comba Telecom Systems, you can compare the effects of market volatilities on SLR Investment and Comba Telecom 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 Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Comba Telecom.

Diversification Opportunities for SLR Investment and Comba Telecom

SLRCombaDiversified AwaySLRCombaDiversified Away100%
0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between SLR and Comba is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems 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 Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of SLR Investment i.e., SLR Investment and Comba Telecom go up and down completely randomly.

Pair Corralation between SLR Investment and Comba Telecom

Assuming the 90 days horizon SLR Investment is expected to generate 3.94 times less return on investment than Comba Telecom. But when comparing it to its historical volatility, SLR Investment Corp is 5.14 times less risky than Comba Telecom. It trades about 0.12 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5.50  in Comba Telecom Systems on November 21, 2024 and sell it today you would earn a total of  6.50  from holding Comba Telecom Systems or generate 118.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SLR Investment Corp  vs.  Comba Telecom Systems

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-50510152025
JavaScript chart by amCharts 3.21.15ZSL COA1
       Timeline  
SLR Investment Corp 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SLR Investment Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, SLR Investment may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1515.51616.517
Comba Telecom Systems 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Comba Telecom Systems are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Comba Telecom unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.10.1050.110.1150.120.1250.130.1350.14

SLR Investment and Comba Telecom Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.79-2.84-1.89-0.940.01.012.043.074.09 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15ZSL COA1
       Returns  

Pair Trading with SLR Investment and Comba Telecom

The main advantage of trading using opposite SLR Investment and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Comba Telecom 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.
The idea behind SLR Investment Corp and Comba Telecom Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing