Correlation Between Triplepoint Venture and SLR Investment

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

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

Diversification Opportunities for Triplepoint Venture and SLR Investment

0.39

Correlation Coefficient

Triplepoint Venture  SLR Investment

Weak diversification

The 3 months correlation between Triplepoint and SLR is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Triplepoint Venture Growth 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 Triplepoint Venture 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 Triplepoint Venture Growth 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 Triplepoint Venture i.e., Triplepoint Venture and SLR Investment go up and down completely randomly.

Pair Corralation between Triplepoint Venture and SLR Investment

Given the investment horizon of 90 days Triplepoint Venture Growth is expected to under-perform the SLR Investment. In addition to that, Triplepoint Venture is 2.02 times more volatile than SLR Investment Corp. It trades about -0.05 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.0 per unit of volatility. If you would invest  1,635  in SLR Investment Corp on May 18, 2025 and sell it today you would lose (5.00) from holding SLR Investment Corp or give up 0.31% of portfolio value over 90 days.

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

Triplepoint Venture Growth  vs.  SLR Investment Corp

Triplepoint Venture

Risk-Adjusted Performance

Weakest

Over the last 90 days Triplepoint Venture Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Triplepoint Venture is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 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.

Pair Trading with Triplepoint Venture and SLR Investment

The main advantage of trading using opposite Triplepoint Venture and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triplepoint Venture 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 Triplepoint Venture Growth 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.