Correlation Between Bet At and SLR Investment

Can any of the company-specific risk be diversified away by investing in both Bet At and SLR Investment 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 Bet At and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between bet at home AG and SLR Investment Corp, you can compare the effects of market volatilities on Bet At and SLR Investment 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 Bet At with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and SLR Investment.

Diversification Opportunities for Bet At and SLR Investment

-0.96

Correlation Coefficient

Bet At  SLR Investment

Pay attention - limited upside

The 3 months correlation between Bet and SLR is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp and Bet At 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 bet at home AG are associated (or correlated) with SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of Bet At i.e., Bet At and SLR Investment go up and down completely randomly.

Pair Corralation between Bet At and SLR Investment

Assuming the 90 days trading horizon Bet At is expected to generate 20.79 times less return on investment than SLR Investment. In addition to that, Bet At is 3.83 times more volatile than SLR Investment Corp. It trades about 0.0 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.08 per unit of volatility. If you would invest  1,251  in SLR Investment Corp on October 5, 2024 and sell it today you would earn a total of  306.00  from holding SLR Investment Corp or generate 24.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

bet at home AG  vs.  SLR Investment Corp

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SLR Investment Corp

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days SLR Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, SLR Investment reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bet At and SLR Investment

The main advantage of trading using opposite Bet At and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.

The idea behind bet at home AG and SLR Investment Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Valuation module to check real value of public entities based on technical and fundamental data.