Correlation Between SLR Investment and PETCO HEALTH
Can any of the company-specific risk be diversified away by investing in both SLR Investment and PETCO HEALTH 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 PETCO HEALTH 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 PETCO HEALTH CLA, you can compare the effects of market volatilities on SLR Investment and PETCO HEALTH 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 PETCO HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and PETCO HEALTH.
Diversification Opportunities for SLR Investment and PETCO HEALTH
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SLR and PETCO is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and PETCO HEALTH CLA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETCO HEALTH CLA 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 PETCO HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETCO HEALTH CLA has no effect on the direction of SLR Investment i.e., SLR Investment and PETCO HEALTH go up and down completely randomly.
Pair Corralation between SLR Investment and PETCO HEALTH
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.22 times more return on investment than PETCO HEALTH. However, SLR Investment Corp is 4.47 times less risky than PETCO HEALTH. It trades about 0.17 of its potential returns per unit of risk. PETCO HEALTH CLA is currently generating about 0.0 per unit of risk. If you would invest 1,283 in SLR Investment Corp on April 20, 2025 and sell it today you would earn a total of 144.00 from holding SLR Investment Corp or generate 11.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SLR Investment Corp vs. PETCO HEALTH CLA
Performance |
Timeline |
SLR Investment Corp |
PETCO HEALTH CLA |
SLR Investment and PETCO HEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SLR Investment and PETCO HEALTH
The main advantage of trading using opposite SLR Investment and PETCO HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, PETCO HEALTH 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 PETCO HEALTH will offset losses from the drop in PETCO HEALTH's long position.SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. AUREA SA INH | SLR Investment vs. SIVERS SEMICONDUCTORS AB |
PETCO HEALTH vs. OReilly Automotive | PETCO HEALTH vs. Tractor Supply | PETCO HEALTH vs. Best Buy Co | PETCO HEALTH vs. AUREA SA INH |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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