Correlation Between SLR Investment and Contextlogic

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

Diversification Opportunities for SLR Investment and Contextlogic

-0.1

Correlation Coefficient

SLR Investment  Contextlogic

Good diversification

The 3 months correlation between SLR and Contextlogic is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic 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 Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of SLR Investment i.e., SLR Investment and Contextlogic go up and down completely randomly.

Pair Corralation between SLR Investment and Contextlogic

Given the investment horizon of 90 days SLR Investment Corp is expected to generate 0.16 times more return on investment than Contextlogic. However, SLR Investment Corp is 6.41 times less risky than Contextlogic. It trades about 0.03 of its potential returns per unit of risk. Contextlogic is currently generating about -0.08 per unit of risk. If you would invest  1,620  in SLR Investment Corp on May 28, 2025 and sell it today you would earn a total of  23.00  from holding SLR Investment Corp or generate 1.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	29.03%
Values	Daily Returns

SLR Investment Corp  vs.  Contextlogic

SLR Investment Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SLR Investment Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Contextlogic

Risk-Adjusted Performance

Weakest

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with SLR Investment and Contextlogic

The main advantage of trading using opposite SLR Investment and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Contextlogic 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 Contextlogic will offset losses from the drop in Contextlogic's long position.

The idea behind SLR Investment Corp and Contextlogic 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.