Correlation Between Solowin Holdings and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and Eaton Vance 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 Eaton Vance 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 Eaton Vance Senior, you can compare the effects of market volatilities on Solowin Holdings and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and Eaton Vance.
Diversification Opportunities for Solowin Holdings and Eaton Vance
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solowin and Eaton is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Senior has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and Eaton Vance go up and down completely randomly.
Pair Corralation between Solowin Holdings and Eaton Vance
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to generate 4.27 times more return on investment than Eaton Vance. However, Solowin Holdings is 4.27 times more volatile than Eaton Vance Senior. It trades about 0.07 of its potential returns per unit of risk. Eaton Vance Senior is currently generating about -0.39 per unit of risk. If you would invest 136.00 in Solowin Holdings Ordinary on January 8, 2025 and sell it today you would earn a total of 7.00 from holding Solowin Holdings Ordinary or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solowin Holdings Ordinary vs. Eaton Vance Senior
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| Eaton Vance Senior |
Solowin Holdings and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and Eaton Vance
The main advantage of trading using opposite Solowin Holdings and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Solowin Holdings vs. MFS Investment Grade | Solowin Holdings vs. Eaton Vance National | Solowin Holdings vs. Federated Premier Municipal | Solowin Holdings vs. Gabelli Healthcare WellnessRx |
| Eaton Vance vs. Blackrock Floating Rate | Eaton Vance vs. Pioneer Floating Rate | Eaton Vance vs. Eaton Vance Senior | Eaton Vance vs. Blackrock Debt Strategies |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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