Correlation Between SLR Investment and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both SLR Investment and TRADEDOUBLER 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 TRADEDOUBLER 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 TRADEDOUBLER AB SK, you can compare the effects of market volatilities on SLR Investment and TRADEDOUBLER 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 TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and TRADEDOUBLER.
Diversification Opportunities for SLR Investment and TRADEDOUBLER
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SLR and TRADEDOUBLER is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK 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 TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of SLR Investment i.e., SLR Investment and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between SLR Investment and TRADEDOUBLER
Assuming the 90 days horizon SLR Investment is expected to generate 1.69 times less return on investment than TRADEDOUBLER. But when comparing it to its historical volatility, SLR Investment Corp is 2.7 times less risky than TRADEDOUBLER. It trades about 0.3 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 27.00 in TRADEDOUBLER AB SK on October 23, 2024 and sell it today you would earn a total of 2.00 from holding TRADEDOUBLER AB SK or generate 7.41% 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. TRADEDOUBLER AB SK
Performance |
| Timeline |
| SLR Investment Corp |
| TRADEDOUBLER AB SK |
SLR Investment and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and TRADEDOUBLER
The main advantage of trading using opposite SLR Investment and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| SLR Investment vs. BII Railway Transportation | SLR Investment vs. PLANT VEDA FOODS | SLR Investment vs. Nomad Foods | SLR Investment vs. INDOFOOD AGRI RES |
| TRADEDOUBLER vs. Addus HomeCare | TRADEDOUBLER vs. CHRYSALIS INVESTMENTS LTD | TRADEDOUBLER vs. Genco Shipping Trading | TRADEDOUBLER vs. The Home Depot |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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