Correlation Between Solowin Holdings and APx Acquisition
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and APx Acquisition 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 Solowin Holdings and APx Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solowin Holdings Ordinary and APx Acquisition I, you can compare the effects of market volatilities on Solowin Holdings and APx Acquisition 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 Solowin Holdings with a short position of APx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and APx Acquisition.
Diversification Opportunities for Solowin Holdings and APx Acquisition
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solowin and APx is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and APx Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APx Acquisition I and Solowin Holdings 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 Solowin Holdings Ordinary are associated (or correlated) with APx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APx Acquisition I has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and APx Acquisition go up and down completely randomly.
Pair Corralation between Solowin Holdings and APx Acquisition
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to generate 25.62 times more return on investment than APx Acquisition. However, Solowin Holdings is 25.62 times more volatile than APx Acquisition I. It trades about 0.05 of its potential returns per unit of risk. APx Acquisition I is currently generating about 0.1 per unit of risk. If you would invest 608.00 in Solowin Holdings Ordinary on September 12, 2024 and sell it today you would lose (376.00) from holding Solowin Holdings Ordinary or give up 61.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.37% |
| Values | Daily Returns |
Solowin Holdings Ordinary vs. APx Acquisition I
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| APx Acquisition I |
Solowin Holdings and APx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and APx Acquisition
The main advantage of trading using opposite Solowin Holdings and APx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, APx Acquisition 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 APx Acquisition will offset losses from the drop in APx Acquisition's long position.| Solowin Holdings vs. Raymond James Financial | Solowin Holdings vs. The Charles Schwab | Solowin Holdings vs. The Charles Schwab | Solowin Holdings vs. Mercurity Fintech Holding |
| APx Acquisition vs. HUMANA INC | APx Acquisition vs. Barloworld Ltd ADR | APx Acquisition vs. Morningstar Unconstrained Allocation | APx Acquisition vs. Thrivent High Yield |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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