Correlation Between SLR Investment and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both SLR Investment and JSC Halyk 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 JSC Halyk 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 JSC Halyk bank, you can compare the effects of market volatilities on SLR Investment and JSC Halyk 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 JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and JSC Halyk.
Diversification Opportunities for SLR Investment and JSC Halyk
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SLR and JSC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank 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 JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of SLR Investment i.e., SLR Investment and JSC Halyk go up and down completely randomly.
Pair Corralation between SLR Investment and JSC Halyk
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.46 times more return on investment than JSC Halyk. However, SLR Investment Corp is 2.17 times less risky than JSC Halyk. It trades about 0.21 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.02 per unit of risk. If you would invest 1,429 in SLR Investment Corp on September 2, 2024 and sell it today you would earn a total of 132.00 from holding SLR Investment Corp or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. JSC Halyk bank
Performance |
| Timeline |
| SLR Investment Corp |
| JSC Halyk bank |
SLR Investment and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and JSC Halyk
The main advantage of trading using opposite SLR Investment and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. NMI Holdings |
| JSC Halyk vs. IDP EDUCATION LTD | JSC Halyk vs. TROPHY GAMES DEV | JSC Halyk vs. CHINA EDUCATION GROUP | JSC Halyk vs. Adtalem Global Education |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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