Correlation Between SLR Investment and PT Global

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

Diversification Opportunities for SLR Investment and PT Global

-0.18

Correlation Coefficient

SLR Investment  PT Global

Good diversification

The 3 months correlation between SLR and 06L is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom 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 PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of SLR Investment i.e., SLR Investment and PT Global go up and down completely randomly.

Pair Corralation between SLR Investment and PT Global

Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.11 times more return on investment than PT Global. However, SLR Investment Corp is 8.73 times less risky than PT Global. It trades about 0.04 of its potential returns per unit of risk. PT Global Mediacom is currently generating about -0.12 per unit of risk. If you would invest  1,534  in SLR Investment Corp on December 27, 2024 and sell it today you would earn a total of  38.00  from holding SLR Investment Corp or generate 2.48% return on investment over 90 days.

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

SLR Investment Corp  vs.  PT Global Mediacom

SLR Investment Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SLR Investment Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SLR Investment is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

PT Global Mediacom

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SLR Investment and PT Global

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

The idea behind SLR Investment Corp and PT Global Mediacom 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.