Correlation Between SLR Investment and CSL
Can any of the company-specific risk be diversified away by investing in both SLR Investment and CSL 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 CSL 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 CSL Limited, you can compare the effects of market volatilities on SLR Investment and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and CSL.
Diversification Opportunities for SLR Investment and CSL
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLR and CSL is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and CSL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL Limited 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL Limited has no effect on the direction of SLR Investment i.e., SLR Investment and CSL go up and down completely randomly.
Pair Corralation between SLR Investment and CSL
Assuming the 90 days horizon SLR Investment Corp is expected to generate 1.21 times more return on investment than CSL. However, SLR Investment is 1.21 times more volatile than CSL Limited. It trades about 0.36 of its potential returns per unit of risk. CSL Limited is currently generating about 0.0 per unit of risk. If you would invest 1,495 in SLR Investment Corp on October 20, 2024 and sell it today you would earn a total of 110.00 from holding SLR Investment Corp or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. CSL Limited
Performance |
| Timeline |
| SLR Investment Corp |
| CSL Limited |
SLR Investment and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and CSL
The main advantage of trading using opposite SLR Investment and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| SLR Investment vs. CODERE ONLINE LUX | SLR Investment vs. Lamar Advertising | SLR Investment vs. SALESFORCE INC CDR | SLR Investment vs. CarsalesCom |
| CSL vs. Novo Nordisk AS | CSL vs. CSL LTD SPONADR | CSL vs. Mercedes Benz Group AG | CSL vs. Vertex Pharmaceuticals Incorporated |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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