Correlation Between SLR Investment and Daikin IndustriesLtd
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Daikin IndustriesLtd 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 Daikin IndustriesLtd 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 Daikin IndustriesLtd, you can compare the effects of market volatilities on SLR Investment and Daikin IndustriesLtd 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 Daikin IndustriesLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Daikin IndustriesLtd.
Diversification Opportunities for SLR Investment and Daikin IndustriesLtd
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SLR and Daikin is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Daikin IndustriesLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daikin IndustriesLtd 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 Daikin IndustriesLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daikin IndustriesLtd has no effect on the direction of SLR Investment i.e., SLR Investment and Daikin IndustriesLtd go up and down completely randomly.
Pair Corralation between SLR Investment and Daikin IndustriesLtd
Assuming the 90 days horizon SLR Investment Corp is expected to generate 1.02 times more return on investment than Daikin IndustriesLtd. However, SLR Investment is 1.02 times more volatile than Daikin IndustriesLtd. It trades about 0.19 of its potential returns per unit of risk. Daikin IndustriesLtd is currently generating about -0.07 per unit of risk. If you would invest 1,380 in SLR Investment Corp on November 7, 2024 and sell it today you would earn a total of 233.00 from holding SLR Investment Corp or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Daikin IndustriesLtd
Performance |
| Timeline |
| SLR Investment Corp |
| Daikin IndustriesLtd |
SLR Investment and Daikin IndustriesLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Daikin IndustriesLtd
The main advantage of trading using opposite SLR Investment and Daikin IndustriesLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Daikin IndustriesLtd 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 Daikin IndustriesLtd will offset losses from the drop in Daikin IndustriesLtd's long position.| SLR Investment vs. Playtech plc | SLR Investment vs. Boyd Gaming | SLR Investment vs. BioNTech SE | SLR Investment vs. PENN NATL GAMING |
| Daikin IndustriesLtd vs. BOS BETTER ONLINE | Daikin IndustriesLtd vs. Lamar Advertising | Daikin IndustriesLtd vs. INTERNET INJPADR 1 | Daikin IndustriesLtd vs. GMO Internet |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |