Correlation Between SLR Investment and Thyssenkrupp
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Thyssenkrupp 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 Thyssenkrupp 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 thyssenkrupp AG, you can compare the effects of market volatilities on SLR Investment and Thyssenkrupp 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 Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Thyssenkrupp.
Diversification Opportunities for SLR Investment and Thyssenkrupp
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SLR and Thyssenkrupp is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG 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 Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of SLR Investment i.e., SLR Investment and Thyssenkrupp go up and down completely randomly.
Pair Corralation between SLR Investment and Thyssenkrupp
Assuming the 90 days horizon SLR Investment is expected to generate 6.97 times less return on investment than Thyssenkrupp. But when comparing it to its historical volatility, SLR Investment Corp is 2.57 times less risky than Thyssenkrupp. It trades about 0.11 of its potential returns per unit of risk. thyssenkrupp AG is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 344.00 in thyssenkrupp AG on September 18, 2024 and sell it today you would earn a total of 64.00 from holding thyssenkrupp AG or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SLR Investment Corp vs. thyssenkrupp AG
Performance |
| Timeline |
| SLR Investment Corp |
| thyssenkrupp AG |
SLR Investment and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Thyssenkrupp
The main advantage of trading using opposite SLR Investment and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.| SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. SIVERS SEMICONDUCTORS AB |
| Thyssenkrupp vs. Japan Asia Investment | Thyssenkrupp vs. DIVERSIFIED ROYALTY | Thyssenkrupp vs. CARSALESCOM | Thyssenkrupp vs. SLR Investment Corp |
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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