Correlation Between ASTELLAS PHARMA and SLR Investment
Can any of the company-specific risk be diversified away by investing in both ASTELLAS PHARMA 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 ASTELLAS PHARMA and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTELLAS PHARMA UNSPADR and SLR Investment Corp, you can compare the effects of market volatilities on ASTELLAS PHARMA 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 ASTELLAS PHARMA with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTELLAS PHARMA and SLR Investment.
Diversification Opportunities for ASTELLAS PHARMA and SLR Investment
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASTELLAS and SLR is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ASTELLAS PHARMA UNSPADR 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 ASTELLAS PHARMA 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 ASTELLAS PHARMA UNSPADR 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 ASTELLAS PHARMA i.e., ASTELLAS PHARMA and SLR Investment go up and down completely randomly.
Pair Corralation between ASTELLAS PHARMA and SLR Investment
Assuming the 90 days trading horizon ASTELLAS PHARMA is expected to generate 1.64 times less return on investment than SLR Investment. In addition to that, ASTELLAS PHARMA is 1.01 times more volatile than SLR Investment Corp. It trades about 0.09 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.15 per unit of volatility. If you would invest 1,628 in SLR Investment Corp on December 4, 2024 and sell it today you would earn a total of 60.00 from holding SLR Investment Corp or generate 3.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
ASTELLAS PHARMA UNSPADR vs. SLR Investment Corp
Performance |
Timeline |
ASTELLAS PHARMA UNSPADR |
SLR Investment Corp |
ASTELLAS PHARMA and SLR Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASTELLAS PHARMA and SLR Investment
The main advantage of trading using opposite ASTELLAS PHARMA and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTELLAS PHARMA 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.ASTELLAS PHARMA vs. BAKED GAMES SA | ASTELLAS PHARMA vs. Entravision Communications | ASTELLAS PHARMA vs. CHINA TELECOM H | ASTELLAS PHARMA vs. FRACTAL GAMING GROUP |
SLR Investment vs. Easy Software AG | SLR Investment vs. Nanjing Panda Electronics | SLR Investment vs. SHELF DRILLING LTD | SLR Investment vs. Major Drilling Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |