Correlation Between SLR Investment and PULSION Medical
Can any of the company-specific risk be diversified away by investing in both SLR Investment and PULSION Medical 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 PULSION Medical 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 PULSION Medical Systems, you can compare the effects of market volatilities on SLR Investment and PULSION Medical 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 PULSION Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and PULSION Medical.
Diversification Opportunities for SLR Investment and PULSION Medical
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SLR and PULSION is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and PULSION Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PULSION Medical Systems 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 PULSION Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PULSION Medical Systems has no effect on the direction of SLR Investment i.e., SLR Investment and PULSION Medical go up and down completely randomly.
Pair Corralation between SLR Investment and PULSION Medical
Assuming the 90 days horizon SLR Investment Corp is expected to generate 3.18 times more return on investment than PULSION Medical. However, SLR Investment is 3.18 times more volatile than PULSION Medical Systems. It trades about 0.19 of its potential returns per unit of risk. PULSION Medical Systems is currently generating about 0.1 per unit of risk. If you would invest 1,380 in SLR Investment Corp on November 7, 2024 and sell it today you would earn a total of 233.00 from holding SLR Investment Corp or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. PULSION Medical Systems
Performance |
| Timeline |
| SLR Investment Corp |
| PULSION Medical Systems |
SLR Investment and PULSION Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and PULSION Medical
The main advantage of trading using opposite SLR Investment and PULSION Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, PULSION Medical 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 PULSION Medical will offset losses from the drop in PULSION Medical's long position.| SLR Investment vs. Playtech plc | SLR Investment vs. Boyd Gaming | SLR Investment vs. BioNTech SE | SLR Investment vs. PENN NATL GAMING |
| PULSION Medical vs. Compagnie Plastic Omnium | PULSION Medical vs. SANOK RUBBER ZY | PULSION Medical vs. VULCAN MATERIALS | PULSION Medical 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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