Correlation Between SLR Investment and Shimano
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Shimano 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 Shimano 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 Shimano, you can compare the effects of market volatilities on SLR Investment and Shimano 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 Shimano. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Shimano.
Diversification Opportunities for SLR Investment and Shimano
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLR and Shimano is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Shimano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shimano 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 Shimano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shimano has no effect on the direction of SLR Investment i.e., SLR Investment and Shimano go up and down completely randomly.
Pair Corralation between SLR Investment and Shimano
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.8 times more return on investment than Shimano. However, SLR Investment Corp is 1.26 times less risky than Shimano. It trades about 0.24 of its potential returns per unit of risk. Shimano is currently generating about -0.25 per unit of risk. If you would invest 1,327 in SLR Investment Corp on August 28, 2024 and sell it today you would earn a total of 221.00 from holding SLR Investment Corp or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Shimano
Performance |
| Timeline |
| SLR Investment Corp |
| Shimano |
SLR Investment and Shimano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Shimano
The main advantage of trading using opposite SLR Investment and Shimano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Shimano 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 Shimano will offset losses from the drop in Shimano's long position.| SLR Investment vs. The Bank of | SLR Investment vs. Superior Plus Corp | SLR Investment vs. NMI Holdings | SLR Investment vs. Origin Agritech |
| Shimano vs. NH HOTEL GROUP | Shimano vs. SLR Investment Corp | Shimano vs. The City of | Shimano vs. ECHO INVESTMENT ZY |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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