Correlation Between SLR Investment and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Singapore Telecommunicatio 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 Singapore Telecommunicatio 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 Singapore Telecommunications Limited, you can compare the effects of market volatilities on SLR Investment and Singapore Telecommunicatio 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 Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Singapore Telecommunicatio.
Diversification Opportunities for SLR Investment and Singapore Telecommunicatio
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between SLR and Singapore is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio 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 Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of SLR Investment i.e., SLR Investment and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between SLR Investment and Singapore Telecommunicatio
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.79 times more return on investment than Singapore Telecommunicatio. However, SLR Investment Corp is 1.26 times less risky than Singapore Telecommunicatio. It trades about 0.06 of its potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.04 per unit of risk. If you would invest 1,145 in SLR Investment Corp on August 26, 2024 and sell it today you would earn a total of 400.00 from holding SLR Investment Corp or generate 34.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Singapore Telecommunications L
Performance |
| Timeline |
| SLR Investment Corp |
| Singapore Telecommunicatio |
SLR Investment and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Singapore Telecommunicatio
The main advantage of trading using opposite SLR Investment and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| SLR Investment vs. The Bank of | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. NMI Holdings |
| Singapore Telecommunicatio vs. SHIN ETSU CHEMICAL | Singapore Telecommunicatio vs. Public Storage | Singapore Telecommunicatio vs. Eastman Chemical | Singapore Telecommunicatio vs. KINGBOARD CHEMICAL |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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