Correlation Between Stellus Capital and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Stellus Capital and SLR Investment 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 Stellus Capital and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellus Capital Investment and SLR Investment Corp, you can compare the effects of market volatilities on Stellus Capital and SLR Investment 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 Stellus Capital with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellus Capital and SLR Investment.
Diversification Opportunities for Stellus Capital and SLR Investment
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stellus and SLR is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Stellus Capital Investment and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp and Stellus Capital 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 Stellus Capital Investment are associated (or correlated) with SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of Stellus Capital i.e., Stellus Capital and SLR Investment go up and down completely randomly.
Pair Corralation between Stellus Capital and SLR Investment
Considering the 90-day investment horizon Stellus Capital Investment is expected to generate 1.12 times more return on investment than SLR Investment. However, Stellus Capital is 1.12 times more volatile than SLR Investment Corp. It trades about 0.18 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.02 per unit of risk. If you would invest 1,315 in Stellus Capital Investment on May 26, 2025 and sell it today you would earn a total of 136.00 from holding Stellus Capital Investment or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellus Capital Investment vs. SLR Investment Corp
Performance |
| Timeline |
| Stellus Capital Inve |
| SLR Investment Corp |
Stellus Capital and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellus Capital and SLR Investment
The main advantage of trading using opposite Stellus Capital and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellus Capital position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| Stellus Capital vs. PennantPark Floating Rate | Stellus Capital vs. Gladstone Capital | Stellus Capital vs. Gladstone Investment | Stellus Capital vs. Prospect Capital |
| SLR Investment vs. Stellus Capital Investment | SLR Investment vs. Triplepoint Venture Growth | SLR Investment vs. Golub Capital BDC | SLR Investment vs. Gladstone Capital |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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