Correlation Between NYSE Composite and Solowin Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Solowin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Solowin Holdings Ordinary, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Solowin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Solowin Holdings.
Diversification Opportunities for NYSE Composite and Solowin Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Solowin is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Solowin Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Solowin Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.75 times less return on investment than Solowin Holdings. But when comparing it to its historical volatility, NYSE Composite is 10.05 times less risky than Solowin Holdings. It trades about 0.17 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Solowin Holdings Ordinary
Performance |
| Timeline |
NYSE Composite and Solowin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Solowin Holdings Ordinary
Pair trading matchups for Solowin Holdings
Pair Trading with NYSE Composite and Solowin Holdings
The main advantage of trading using opposite NYSE Composite and Solowin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |