Correlation Between SLR Investment and JLT MOBILE
Can any of the company-specific risk be diversified away by investing in both SLR Investment and JLT MOBILE 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 JLT MOBILE 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 JLT MOBILE PUTER, you can compare the effects of market volatilities on SLR Investment and JLT MOBILE 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 JLT MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and JLT MOBILE.
Diversification Opportunities for SLR Investment and JLT MOBILE
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLR and JLT is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and JLT MOBILE PUTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT MOBILE PUTER 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 JLT MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT MOBILE PUTER has no effect on the direction of SLR Investment i.e., SLR Investment and JLT MOBILE go up and down completely randomly.
Pair Corralation between SLR Investment and JLT MOBILE
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.36 times more return on investment than JLT MOBILE. However, SLR Investment Corp is 2.76 times less risky than JLT MOBILE. It trades about 0.18 of its potential returns per unit of risk. JLT MOBILE PUTER is currently generating about -0.14 per unit of risk. If you would invest 1,381 in SLR Investment Corp on October 26, 2024 and sell it today you would earn a total of 220.00 from holding SLR Investment Corp or generate 15.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SLR Investment Corp vs. JLT MOBILE PUTER
Performance |
Timeline |
SLR Investment Corp |
JLT MOBILE PUTER |
SLR Investment and JLT MOBILE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SLR Investment and JLT MOBILE
The main advantage of trading using opposite SLR Investment and JLT MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, JLT MOBILE 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 JLT MOBILE will offset losses from the drop in JLT MOBILE's long position.SLR Investment vs. Blackstone Group | ||
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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