Correlation Between XPLR Infrastructure and SLR Investment

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

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

Diversification Opportunities for XPLR Infrastructure and SLR Investment

0.15

Correlation Coefficient

XPLR Infrastructure  SLR Investment

Average diversification

The 3 months correlation between XPLR and SLR is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding XPLR Infrastructure LP 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 XPLR Infrastructure 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 XPLR Infrastructure LP 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 XPLR Infrastructure i.e., XPLR Infrastructure and SLR Investment go up and down completely randomly.

Pair Corralation between XPLR Infrastructure and SLR Investment

Given the investment horizon of 90 days XPLR Infrastructure LP is expected to generate 3.95 times more return on investment than SLR Investment. However, XPLR Infrastructure is 3.95 times more volatile than SLR Investment Corp. It trades about 0.03 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.0 per unit of risk. If you would invest  957.00  in XPLR Infrastructure LP on May 18, 2025 and sell it today you would earn a total of  35.00  from holding XPLR Infrastructure LP or generate 3.66% return on investment over 90 days.

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

XPLR Infrastructure LP  vs.  SLR Investment Corp

XPLR Infrastructure

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in XPLR Infrastructure LP are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, XPLR Infrastructure may actually be approaching a critical reversion point that can send shares even higher in September 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 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 XPLR Infrastructure and SLR Investment

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

Check out your portfolio center.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.