Correlation Between Distoken Acquisition and Solowin Holdings
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition and Solowin Holdings 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 Distoken Acquisition and Solowin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and Solowin Holdings Ordinary, you can compare the effects of market volatilities on Distoken Acquisition and Solowin Holdings 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 Distoken Acquisition with a short position of Solowin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and Solowin Holdings.
Diversification Opportunities for Distoken Acquisition and Solowin Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Distoken and Solowin is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and Solowin Holdings Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solowin Holdings Ordinary and Distoken Acquisition 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 Distoken Acquisition are associated (or correlated) with Solowin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solowin Holdings Ordinary has no effect on the direction of Distoken Acquisition i.e., Distoken Acquisition and Solowin Holdings go up and down completely randomly.
Pair Corralation between Distoken Acquisition and Solowin Holdings
Given the investment horizon of 90 days Distoken Acquisition is expected to generate 2.24 times less return on investment than Solowin Holdings. But when comparing it to its historical volatility, Distoken Acquisition is 16.98 times less risky than Solowin Holdings. It trades about 0.23 of its potential returns per unit of risk. Solowin Holdings Ordinary is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 254.00 in Solowin Holdings Ordinary on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Solowin Holdings Ordinary or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Distoken Acquisition vs. Solowin Holdings Ordinary
Performance |
| Timeline |
| Distoken Acquisition |
| Solowin Holdings Ordinary |
Distoken Acquisition and Solowin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and Solowin Holdings
The main advantage of trading using opposite Distoken Acquisition and Solowin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition position performs unexpectedly, Solowin Holdings 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 Solowin Holdings will offset losses from the drop in Solowin Holdings' long position.| Distoken Acquisition vs. Parker Hannifin | Distoken Acquisition vs. Reservoir Media | Distoken Acquisition vs. Summit Materials | Distoken Acquisition vs. Weibo Corp |
| Solowin Holdings vs. China Health Management | Solowin Holdings vs. Absolute Health and | Solowin Holdings vs. Supurva Healthcare Group | Solowin Holdings vs. TransAKT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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