Correlation Between SLR Investment and Caseys General
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on SLR Investment and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Caseys General.
Diversification Opportunities for SLR Investment and Caseys General
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SLR and Caseys is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of SLR Investment i.e., SLR Investment and Caseys General go up and down completely randomly.
Pair Corralation between SLR Investment and Caseys General
Assuming the 90 days horizon SLR Investment is expected to generate 1.87 times less return on investment than Caseys General. But when comparing it to its historical volatility, SLR Investment Corp is 1.36 times less risky than Caseys General. It trades about 0.07 of its potential returns per unit of risk. Caseys General Stores is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20,565 in Caseys General Stores on November 1, 2024 and sell it today you would earn a total of 19,435 from holding Caseys General Stores or generate 94.51% 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. Caseys General Stores
Performance |
| Timeline |
| SLR Investment Corp |
| Caseys General Stores |
SLR Investment and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Caseys General
The main advantage of trading using opposite SLR Investment and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| SLR Investment vs. FARM 51 GROUP | SLR Investment vs. DAIRY FARM INTL | SLR Investment vs. Daito Trust Construction | SLR Investment vs. Check Point Software |
| Caseys General vs. CHRYSALIS INVESTMENTS LTD | Caseys General vs. Zijin Mining Group | Caseys General vs. ECHO INVESTMENT ZY | Caseys General vs. SLR Investment Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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