Correlation Between Canadian Imperial and SLR Investment

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

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

Diversification Opportunities for Canadian Imperial and SLR Investment

-0.46

Correlation Coefficient

Canadian Imperial  SLR Investment

Very good diversification

The 3 months correlation between Canadian and SLR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank 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 Canadian Imperial 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 Canadian Imperial Bank 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 Canadian Imperial i.e., Canadian Imperial and SLR Investment go up and down completely randomly.

Pair Corralation between Canadian Imperial and SLR Investment

Allowing for the 90-day total investment horizon Canadian Imperial Bank is expected to generate 0.82 times more return on investment than SLR Investment. However, Canadian Imperial Bank is 1.22 times less risky than SLR Investment. It trades about 0.18 of its potential returns per unit of risk. SLR Investment Corp is currently generating about -0.17 per unit of risk. If you would invest  7,279  in Canadian Imperial Bank on July 20, 2025 and sell it today you would earn a total of  750.00  from holding Canadian Imperial Bank or generate 10.3% return on investment over 90 days.

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

Canadian Imperial Bank  vs.  SLR Investment Corp

Canadian Imperial Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Imperial Bank are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Canadian Imperial may actually be approaching a critical reversion point that can send shares even higher in November 2025.

SLR Investment Corp

Risk-Adjusted Performance

Weakest

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 latest unfluctuating performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Canadian Imperial and SLR Investment

The main advantage of trading using opposite Canadian Imperial and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial 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 Canadian Imperial Bank 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.