Correlation Between SLR Investment and Oriola Oyj
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Oriola Oyj 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 Oriola Oyj 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 Oriola Oyj, you can compare the effects of market volatilities on SLR Investment and Oriola Oyj 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 Oriola Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Oriola Oyj.
Diversification Opportunities for SLR Investment and Oriola Oyj
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SLR and Oriola is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Oriola Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriola Oyj 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 Oriola Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriola Oyj has no effect on the direction of SLR Investment i.e., SLR Investment and Oriola Oyj go up and down completely randomly.
Pair Corralation between SLR Investment and Oriola Oyj
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.58 times more return on investment than Oriola Oyj. However, SLR Investment Corp is 1.73 times less risky than Oriola Oyj. It trades about 0.32 of its potential returns per unit of risk. Oriola Oyj is currently generating about 0.17 per unit of risk. If you would invest 1,542 in SLR Investment Corp on October 23, 2024 and sell it today you would earn a total of 74.00 from holding SLR Investment Corp or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
SLR Investment Corp vs. Oriola Oyj
Performance |
| Timeline |
| SLR Investment Corp |
| Oriola Oyj |
SLR Investment and Oriola Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Oriola Oyj
The main advantage of trading using opposite SLR Investment and Oriola Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Oriola Oyj 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 Oriola Oyj will offset losses from the drop in Oriola Oyj's long position.| SLR Investment vs. PLAYWAY SA ZY 10 | SLR Investment vs. ePlay Digital | SLR Investment vs. InPlay Oil Corp | SLR Investment vs. Universal Display |
| Oriola Oyj vs. SLR Investment Corp | Oriola Oyj vs. Apollo Investment Corp | Oriola Oyj vs. Computershare Limited | Oriola Oyj vs. China Communications Services |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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