Correlation Between SLR Investment and MOLSON RS
Can any of the company-specific risk be diversified away by investing in both SLR Investment and MOLSON RS 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 MOLSON RS 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 MOLSON RS BEVERAGE, you can compare the effects of market volatilities on SLR Investment and MOLSON RS 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 MOLSON RS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and MOLSON RS.
Diversification Opportunities for SLR Investment and MOLSON RS
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SLR and MOLSON is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE 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 MOLSON RS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS BEVERAGE has no effect on the direction of SLR Investment i.e., SLR Investment and MOLSON RS go up and down completely randomly.
Pair Corralation between SLR Investment and MOLSON RS
Assuming the 90 days horizon SLR Investment Corp is expected to under-perform the MOLSON RS. In addition to that, SLR Investment is 8.32 times more volatile than MOLSON RS BEVERAGE. It trades about -0.16 of its total potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.22 per unit of volatility. If you would invest 6,556 in MOLSON RS BEVERAGE on December 24, 2024 and sell it today you would earn a total of 44.00 from holding MOLSON RS BEVERAGE or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SLR Investment Corp vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| SLR Investment Corp |
| MOLSON RS BEVERAGE |
SLR Investment and MOLSON RS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and MOLSON RS
The main advantage of trading using opposite SLR Investment and MOLSON RS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, MOLSON RS 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 MOLSON RS will offset losses from the drop in MOLSON RS's long position.| SLR Investment vs. Chiba Bank | SLR Investment vs. TYSNES SPAREBANK NK | SLR Investment vs. NTG Nordic Transport | SLR Investment vs. Cincinnati Financial Corp |
| MOLSON RS vs. Aristocrat Leisure Limited | MOLSON RS vs. CHINA SOUTHN AIR H | MOLSON RS vs. Enter Air SA | MOLSON RS vs. USWE SPORTS AB |
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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