Correlation Between SLR Investment and City Of

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

Diversification Opportunities for SLR Investment and City Of

0.36

Correlation Coefficient

SLR Investment  City Of

Weak diversification

The 3 months correlation between SLR and City is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and The City of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The City 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 City Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The City has no effect on the direction of SLR Investment i.e., SLR Investment and City Of go up and down completely randomly.

Pair Corralation between SLR Investment and City Of

Assuming the 90 days horizon SLR Investment Corp is expected to generate 1.66 times more return on investment than City Of. However, SLR Investment is 1.66 times more volatile than The City of. It trades about 0.17 of its potential returns per unit of risk. The City of is currently generating about 0.13 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	Very Weak
Accuracy	98.44%
Values	Daily Returns

SLR Investment Corp  vs.  The City of

SLR Investment Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SLR Investment Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, SLR Investment may actually be approaching a critical reversion point that can send shares even higher in August 2025.

The City

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The City of are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, City Of is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SLR Investment and City Of

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

The idea behind SLR Investment Corp and The City of 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.