Correlation Between SLR Investment and MTI WIRELESS
Can any of the company-specific risk be diversified away by investing in both SLR Investment and MTI WIRELESS 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 MTI WIRELESS 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 MTI WIRELESS EDGE, you can compare the effects of market volatilities on SLR Investment and MTI WIRELESS 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 MTI WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and MTI WIRELESS.
Diversification Opportunities for SLR Investment and MTI WIRELESS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLR and MTI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and MTI WIRELESS EDGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI WIRELESS EDGE 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 MTI WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI WIRELESS EDGE has no effect on the direction of SLR Investment i.e., SLR Investment and MTI WIRELESS go up and down completely randomly.
Pair Corralation between SLR Investment and MTI WIRELESS
Assuming the 90 days horizon SLR Investment is expected to generate 1.53 times less return on investment than MTI WIRELESS. But when comparing it to its historical volatility, SLR Investment Corp is 4.31 times less risky than MTI WIRELESS. It trades about 0.06 of its potential returns per unit of risk. MTI WIRELESS EDGE is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 50.00 in MTI WIRELESS EDGE on September 3, 2024 and sell it today you would lose (4.00) from holding MTI WIRELESS EDGE or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. MTI WIRELESS EDGE
Performance |
| Timeline |
| SLR Investment Corp |
| MTI WIRELESS EDGE |
SLR Investment and MTI WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and MTI WIRELESS
The main advantage of trading using opposite SLR Investment and MTI WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, MTI WIRELESS 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 MTI WIRELESS will offset losses from the drop in MTI WIRELESS's long position.| SLR Investment vs. Blackstone Group | SLR Investment vs. BlackRock | SLR Investment vs. The Bank of | SLR Investment vs. Ameriprise Financial |
| MTI WIRELESS vs. Evolution Mining Limited | MTI WIRELESS vs. ADRIATIC METALS LS 013355 | MTI WIRELESS vs. International Game Technology | MTI WIRELESS vs. FRACTAL GAMING GROUP |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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