Correlation Between Solowin Holdings and KKR Co
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and KKR Co 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 KKR Co 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 KKR Co LP, you can compare the effects of market volatilities on Solowin Holdings and KKR Co 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 KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and KKR Co.
Diversification Opportunities for Solowin Holdings and KKR Co
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solowin and KKR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and KKR Co LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Co LP 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 KKR Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Co LP has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and KKR Co go up and down completely randomly.
Pair Corralation between Solowin Holdings and KKR Co
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to generate 6.7 times more return on investment than KKR Co. However, Solowin Holdings is 6.7 times more volatile than KKR Co LP. It trades about 0.05 of its potential returns per unit of risk. KKR Co LP is currently generating about 0.13 per unit of risk. If you would invest 608.00 in Solowin Holdings Ordinary on September 3, 2024 and sell it today you would lose (351.00) from holding Solowin Holdings Ordinary or give up 57.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.03% |
| Values | Daily Returns |
Solowin Holdings Ordinary vs. KKR Co LP
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| KKR Co LP |
Solowin Holdings and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and KKR Co
The main advantage of trading using opposite Solowin Holdings and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, KKR Co 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 KKR Co will offset losses from the drop in KKR Co's 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 |
| KKR Co vs. Carlyle Group | KKR Co vs. Ares Management LP | KKR Co vs. Blackstone Group | KKR Co vs. Blue Owl 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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