Correlation Between SLR Investment and Flex
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Flex 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 Flex 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 Flex, you can compare the effects of market volatilities on SLR Investment and Flex 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 Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Flex.
Diversification Opportunities for SLR Investment and Flex
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SLR and Flex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex 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 Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of SLR Investment i.e., SLR Investment and Flex go up and down completely randomly.
Pair Corralation between SLR Investment and Flex
Given the investment horizon of 90 days SLR Investment is expected to generate 4.08 times less return on investment than Flex. But when comparing it to its historical volatility, SLR Investment Corp is 1.83 times less risky than Flex. It trades about 0.22 of its potential returns per unit of risk. Flex is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 2,942 in Flex on April 10, 2025 and sell it today you would earn a total of 2,185 from holding Flex or generate 74.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Flex
Performance |
| Timeline |
| SLR Investment Corp |
| Flex |
SLR Investment and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Flex
The main advantage of trading using opposite SLR Investment and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.| SLR Investment vs. Willamette Valley Vineyards | SLR Investment vs. Nascent Wine | SLR Investment vs. Monster Beverage Corp | SLR Investment vs. Figs Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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