Correlation Between SLR Investment and Macerich
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Macerich 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 Macerich 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 The Macerich, you can compare the effects of market volatilities on SLR Investment and Macerich 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 Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Macerich.
Diversification Opportunities for SLR Investment and Macerich
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SLR and Macerich is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and The Macerich in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich 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 Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of SLR Investment i.e., SLR Investment and Macerich go up and down completely randomly.
Pair Corralation between SLR Investment and Macerich
Assuming the 90 days horizon SLR Investment is expected to generate 1.7 times less return on investment than Macerich. But when comparing it to its historical volatility, SLR Investment Corp is 1.05 times less risky than Macerich. It trades about 0.23 of its potential returns per unit of risk. The Macerich is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,789 in The Macerich on September 14, 2024 and sell it today you would earn a total of 217.00 from holding The Macerich or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. The Macerich
Performance |
| Timeline |
| SLR Investment Corp |
| Macerich |
SLR Investment and Macerich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Macerich
The main advantage of trading using opposite SLR Investment and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich's long position.| SLR Investment vs. QBE Insurance Group | SLR Investment vs. Selective Insurance Group | SLR Investment vs. Summit Materials | SLR Investment vs. REVO INSURANCE SPA |
| Macerich vs. EAT WELL INVESTMENT | Macerich vs. SLR Investment Corp | Macerich vs. MCEWEN MINING INC | Macerich vs. MGIC 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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