Correlation Between SLR Investment and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Mitsubishi Gas 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical, you can compare the effects of market volatilities on SLR Investment and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Mitsubishi Gas.
Diversification Opportunities for SLR Investment and Mitsubishi Gas
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SLR and Mitsubishi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of SLR Investment i.e., SLR Investment and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between SLR Investment and Mitsubishi Gas
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.7 times more return on investment than Mitsubishi Gas. However, SLR Investment Corp is 1.44 times less risky than Mitsubishi Gas. It trades about 0.07 of its potential returns per unit of risk. Mitsubishi Gas Chemical is currently generating about 0.04 per unit of risk. If you would invest 1,125 in SLR Investment Corp on November 7, 2024 and sell it today you would earn a total of 488.00 from holding SLR Investment Corp or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Mitsubishi Gas Chemical
Performance |
| Timeline |
| SLR Investment Corp |
| Mitsubishi Gas Chemical |
SLR Investment and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Mitsubishi Gas
The main advantage of trading using opposite SLR Investment and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' long position.| SLR Investment vs. Playtech plc | SLR Investment vs. Boyd Gaming | SLR Investment vs. BioNTech SE | SLR Investment vs. PENN NATL GAMING |
| Mitsubishi Gas vs. DFS Furniture PLC | Mitsubishi Gas vs. Hua Hong Semiconductor | Mitsubishi Gas vs. ADDUS HOMECARE | Mitsubishi Gas vs. TOREX SEMICONDUCTOR LTD |
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 CEOs Directory module to screen CEOs from public companies around the world.
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