Correlation Between Solowin Holdings and Franklin Resources
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and Franklin Resources 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 Franklin Resources 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 Franklin Resources, you can compare the effects of market volatilities on Solowin Holdings and Franklin Resources 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 Franklin Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and Franklin Resources.
Diversification Opportunities for Solowin Holdings and Franklin Resources
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solowin and Franklin is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and Franklin Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Resources 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 Franklin Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Resources has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and Franklin Resources go up and down completely randomly.
Pair Corralation between Solowin Holdings and Franklin Resources
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to under-perform the Franklin Resources. In addition to that, Solowin Holdings is 5.34 times more volatile than Franklin Resources. It trades about -0.02 of its total potential returns per unit of risk. Franklin Resources is currently generating about 0.01 per unit of volatility. If you would invest 2,275 in Franklin Resources on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Resources or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solowin Holdings Ordinary vs. Franklin Resources
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| Franklin Resources |
Solowin Holdings and Franklin Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and Franklin Resources
The main advantage of trading using opposite Solowin Holdings and Franklin Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, Franklin Resources 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 Franklin Resources will offset losses from the drop in Franklin Resources' long position.| Solowin Holdings vs. Embrace Change Acquisition | Solowin Holdings vs. Howard Hughes | Solowin Holdings vs. New York City | Solowin Holdings vs. Site Centers Corp |
| Franklin Resources vs. BlackRock | Franklin Resources vs. Main Street Capital | Franklin Resources vs. Blackstone Group | Franklin Resources vs. Ares Capital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |