Correlation Between SLR Investment and KOWORLD AG
Can any of the company-specific risk be diversified away by investing in both SLR Investment and KOWORLD AG 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 KOWORLD AG 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 KOWORLD AG, you can compare the effects of market volatilities on SLR Investment and KOWORLD AG 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 KOWORLD AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and KOWORLD AG.
Diversification Opportunities for SLR Investment and KOWORLD AG
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLR and KOWORLD is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and KOWORLD AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOWORLD 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 KOWORLD AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOWORLD AG has no effect on the direction of SLR Investment i.e., SLR Investment and KOWORLD AG go up and down completely randomly.
Pair Corralation between SLR Investment and KOWORLD AG
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.56 times more return on investment than KOWORLD AG. However, SLR Investment Corp is 1.78 times less risky than KOWORLD AG. It trades about 0.16 of its potential returns per unit of risk. KOWORLD AG is currently generating about 0.02 per unit of risk. If you would invest 1,571 in SLR Investment Corp on October 25, 2024 and sell it today you would earn a total of 36.00 from holding SLR Investment Corp or generate 2.29% 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. KOWORLD AG
Performance |
| Timeline |
| SLR Investment Corp |
| KOWORLD AG |
SLR Investment and KOWORLD AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and KOWORLD AG
The main advantage of trading using opposite SLR Investment and KOWORLD AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, KOWORLD AG 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 KOWORLD AG will offset losses from the drop in KOWORLD AG's long position.| SLR Investment vs. FRACTAL GAMING GROUP | SLR Investment vs. Gaming and Leisure | SLR Investment vs. Fair Isaac Corp | SLR Investment vs. Wizz Air Holdings |
| KOWORLD AG vs. Keck Seng Investments | KOWORLD AG vs. FIRST SAVINGS FINL | KOWORLD AG vs. Vishay Intertechnology | KOWORLD AG 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |