Correlation Between SLR Investment and AUSTEVOLL SEAFOOD
Can any of the company-specific risk be diversified away by investing in both SLR Investment and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD, you can compare the effects of market volatilities on SLR Investment and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and AUSTEVOLL SEAFOOD.
Diversification Opportunities for SLR Investment and AUSTEVOLL SEAFOOD
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SLR and AUSTEVOLL is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSTEVOLL SEAFOOD has no effect on the direction of SLR Investment i.e., SLR Investment and AUSTEVOLL SEAFOOD go up and down completely randomly.
Pair Corralation between SLR Investment and AUSTEVOLL SEAFOOD
Assuming the 90 days horizon SLR Investment Corp is expected to generate 1.4 times more return on investment than AUSTEVOLL SEAFOOD. However, SLR Investment is 1.4 times more volatile than AUSTEVOLL SEAFOOD. It trades about 0.26 of its potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about 0.28 per unit of risk. If you would invest 1,404 in SLR Investment Corp on September 1, 2024 and sell it today you would earn a total of 161.00 from holding SLR Investment Corp or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. AUSTEVOLL SEAFOOD
Performance |
| Timeline |
| SLR Investment Corp |
| AUSTEVOLL SEAFOOD |
SLR Investment and AUSTEVOLL SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and AUSTEVOLL SEAFOOD
The main advantage of trading using opposite SLR Investment and AUSTEVOLL SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD will offset losses from the drop in AUSTEVOLL SEAFOOD's long position.| SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. NMI Holdings |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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