Correlation Between SLR Investment and TNEMAK

Can any of the company-specific risk be diversified away by investing in both SLR Investment and TNEMAK 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 TNEMAK 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 TNEMAK 3625 28 JUN 31, you can compare the effects of market volatilities on SLR Investment and TNEMAK 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 TNEMAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and TNEMAK.

Diversification Opportunities for SLR Investment and TNEMAK

0.21

Correlation Coefficient

SLR Investment  TNEMAK

Modest diversification

The 3 months correlation between SLR and TNEMAK is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and TNEMAK 3625 28 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNEMAK 3625 28 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 TNEMAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNEMAK 3625 28 has no effect on the direction of SLR Investment i.e., SLR Investment and TNEMAK go up and down completely randomly.

Pair Corralation between SLR Investment and TNEMAK

Given the investment horizon of 90 days SLR Investment Corp is expected to under-perform the TNEMAK. But the stock apears to be less risky and, when comparing its historical volatility, SLR Investment Corp is 1.31 times less risky than TNEMAK. The stock trades about -0.05 of its potential returns per unit of risk. The TNEMAK 3625 28 JUN 31 is currently generating about 0.68 of returns per unit of risk over similar time horizon. If you would invest  7,794  in TNEMAK 3625 28 JUN 31 on October 11, 2024 and sell it today you would earn a total of  154.00  from holding TNEMAK 3625 28 JUN 31 or generate 1.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	14.29%
Values	Daily Returns

SLR Investment Corp  vs.  TNEMAK 3625 28 JUN 31

SLR Investment Corp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SLR Investment Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, SLR Investment may actually be approaching a critical reversion point that can send shares even higher in February 2025.

TNEMAK 3625 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TNEMAK 3625 28 JUN 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TNEMAK is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SLR Investment and TNEMAK

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

The idea behind SLR Investment Corp and TNEMAK 3625 28 JUN 31 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.