Correlation Between SLR Investment and Klpierre
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Klpierre 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 Klpierre 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 Klpierre SA, you can compare the effects of market volatilities on SLR Investment and Klpierre 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 Klpierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Klpierre.
Diversification Opportunities for SLR Investment and Klpierre
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLR and Klpierre is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA 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 Klpierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of SLR Investment i.e., SLR Investment and Klpierre go up and down completely randomly.
Pair Corralation between SLR Investment and Klpierre
Assuming the 90 days horizon SLR Investment Corp is expected to generate 1.57 times more return on investment than Klpierre. However, SLR Investment is 1.57 times more volatile than Klpierre SA. It trades about 0.19 of its potential returns per unit of risk. Klpierre SA is currently generating about -0.08 per unit of risk. If you would invest 1,380 in SLR Investment Corp on September 15, 2024 and sell it today you would earn a total of 229.00 from holding SLR Investment Corp or generate 16.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SLR Investment Corp vs. Klpierre SA
Performance |
Timeline |
SLR Investment Corp |
Klpierre SA |
SLR Investment and Klpierre Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SLR Investment and Klpierre
The main advantage of trading using opposite SLR Investment and Klpierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Klpierre 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 Klpierre will offset losses from the drop in Klpierre's long position.SLR Investment vs. LION ONE METALS | SLR Investment vs. TAL Education Group | SLR Investment vs. Perdoceo Education | SLR Investment vs. Adtalem Global Education |
Klpierre vs. SLR Investment Corp | Klpierre vs. SEI INVESTMENTS | Klpierre vs. New Residential Investment | Klpierre vs. AGNC INVESTMENT |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |