Correlation Between National Waste and SLR Investment

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

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

Diversification Opportunities for National Waste and SLR Investment

0.0

Correlation Coefficient

National Waste  SLR Investment

Pay attention - limited upside

The 3 months correlation between National and SLR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Waste Management 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 National Waste 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 National Waste Management 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 National Waste i.e., National Waste and SLR Investment go up and down completely randomly.

Pair Corralation between National Waste and SLR Investment

If you would invest  1,501  in SLR Investment Corp on October 7, 2024 and sell it today you would earn a total of  140.00  from holding SLR Investment Corp or generate 9.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

National Waste Management  vs.  SLR Investment Corp

National Waste Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days National Waste Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, National Waste is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

SLR Investment Corp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SLR Investment Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, SLR Investment may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with National Waste and SLR Investment

The main advantage of trading using opposite National Waste and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Waste 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 National Waste Management 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.