Correlation Between SLR Investment and QKL Stores

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

Diversification Opportunities for SLR Investment and QKL Stores

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SLR and QKL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and QKL Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QKL Stores 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 QKL Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QKL Stores has no effect on the direction of SLR Investment i.e., SLR Investment and QKL Stores go up and down completely randomly.

Pair Corralation between SLR Investment and QKL Stores

If you would invest  0.01  in QKL Stores on September 7, 2025 and sell it today you would earn a total of  0.00  from holding QKL Stores or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

SLR Investment Corp  vs.  QKL Stores

 Performance 
       Timeline  
SLR Investment Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SLR Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SLR Investment is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
QKL Stores 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days QKL Stores has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, QKL Stores is not utilizing all of its potentials. The new stock price uproar, may contribute to short-horizon losses for the private investors.

SLR Investment and QKL Stores Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SLR Investment and QKL Stores

The main advantage of trading using opposite SLR Investment and QKL Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, QKL Stores 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 QKL Stores will offset losses from the drop in QKL Stores' long position.
The idea behind SLR Investment Corp and QKL Stores 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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