Correlation Between SLR Investment and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on SLR Investment and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Samsung Electronics.
Diversification Opportunities for SLR Investment and Samsung Electronics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SLR and Samsung is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of SLR Investment i.e., SLR Investment and Samsung Electronics go up and down completely randomly.
Pair Corralation between SLR Investment and Samsung Electronics
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.63 times more return on investment than Samsung Electronics. However, SLR Investment Corp is 1.59 times less risky than Samsung Electronics. It trades about 0.06 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 1,124 in SLR Investment Corp on September 3, 2024 and sell it today you would earn a total of 437.00 from holding SLR Investment Corp or generate 38.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Samsung Electronics Co
Performance |
| Timeline |
| SLR Investment Corp |
| Samsung Electronics |
SLR Investment and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Samsung Electronics
The main advantage of trading using opposite SLR Investment and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| SLR Investment vs. Blackstone Group | SLR Investment vs. BlackRock | SLR Investment vs. The Bank of | SLR Investment vs. Ameriprise Financial |
| Samsung Electronics vs. ARISTOCRAT LEISURE | Samsung Electronics vs. Universal Display | Samsung Electronics vs. PLAYTIKA HOLDING DL 01 | Samsung Electronics vs. TRAVEL LEISURE DL 01 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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