Correlation Between ReAlpha Tech and SLR Investment

Can any of the company-specific risk be diversified away by investing in both ReAlpha Tech 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 ReAlpha Tech and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between reAlpha Tech Corp and SLR Investment Corp, you can compare the effects of market volatilities on ReAlpha Tech 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 ReAlpha Tech with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReAlpha Tech and SLR Investment.

Diversification Opportunities for ReAlpha Tech and SLR Investment

-0.62

Correlation Coefficient

ReAlpha Tech  SLR Investment

Excellent diversification

The 3 months correlation between ReAlpha and SLR is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding reAlpha Tech Corp 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 ReAlpha Tech 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 reAlpha Tech Corp 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 ReAlpha Tech i.e., ReAlpha Tech and SLR Investment go up and down completely randomly.

Pair Corralation between ReAlpha Tech and SLR Investment

Given the investment horizon of 90 days reAlpha Tech Corp is expected to generate 48.86 times more return on investment than SLR Investment. However, ReAlpha Tech is 48.86 times more volatile than SLR Investment Corp. It trades about 0.07 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.11 per unit of risk. If you would invest  65.00  in reAlpha Tech Corp on April 28, 2025 and sell it today you would lose (23.00) from holding reAlpha Tech Corp or give up 35.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

reAlpha Tech Corp  vs.  SLR Investment Corp

reAlpha Tech Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in reAlpha Tech Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ReAlpha Tech exhibited solid returns over the last few months and may actually be approaching a breakup point.

SLR Investment Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SLR Investment Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, SLR Investment may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ReAlpha Tech and SLR Investment

The main advantage of trading using opposite ReAlpha Tech and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReAlpha Tech 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.

The idea behind reAlpha Tech Corp and SLR Investment Corp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.