Correlation Between Solowin Holdings and Embrace Change
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and Embrace Change 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 Embrace Change 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 Embrace Change Acquisition, you can compare the effects of market volatilities on Solowin Holdings and Embrace Change 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 Embrace Change. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and Embrace Change.
Diversification Opportunities for Solowin Holdings and Embrace Change
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solowin and Embrace is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and Embrace Change Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embrace Change Acqui 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 Embrace Change. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embrace Change Acqui has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and Embrace Change go up and down completely randomly.
Pair Corralation between Solowin Holdings and Embrace Change
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to generate 63.08 times more return on investment than Embrace Change. However, Solowin Holdings is 63.08 times more volatile than Embrace Change Acquisition. It trades about 0.05 of its potential returns per unit of risk. Embrace Change Acquisition is currently generating about 0.12 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 (384.00) from holding Solowin Holdings Ordinary or give up 63.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.34% |
| Values | Daily Returns |
Solowin Holdings Ordinary vs. Embrace Change Acquisition
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| Embrace Change Acqui |
Solowin Holdings and Embrace Change Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and Embrace Change
The main advantage of trading using opposite Solowin Holdings and Embrace Change positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, Embrace Change 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 Embrace Change will offset losses from the drop in Embrace Change'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 |
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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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