Correlation Between Solowin Holdings and Saratoga Investment
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and Saratoga Investment 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 Saratoga Investment 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 Saratoga Investment Corp, you can compare the effects of market volatilities on Solowin Holdings and Saratoga Investment 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 Saratoga Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and Saratoga Investment.
Diversification Opportunities for Solowin Holdings and Saratoga Investment
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solowin and Saratoga is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and Saratoga Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investment Corp 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 Saratoga Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investment Corp has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and Saratoga Investment go up and down completely randomly.
Pair Corralation between Solowin Holdings and Saratoga Investment
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to under-perform the Saratoga Investment. In addition to that, Solowin Holdings is 3.4 times more volatile than Saratoga Investment Corp. It trades about -0.09 of its total potential returns per unit of risk. Saratoga Investment Corp is currently generating about 0.39 per unit of volatility. If you would invest 2,326 in Saratoga Investment Corp on September 4, 2024 and sell it today you would earn a total of 211.00 from holding Saratoga Investment Corp or generate 9.07% 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. Saratoga Investment Corp
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| Saratoga Investment Corp |
Solowin Holdings and Saratoga Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and Saratoga Investment
The main advantage of trading using opposite Solowin Holdings and Saratoga Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, Saratoga Investment 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 Saratoga Investment will offset losses from the drop in Saratoga Investment's long position.| Solowin Holdings vs. Visa Class A | Solowin Holdings vs. Diamond Hill Investment | Solowin Holdings vs. Distoken Acquisition | Solowin Holdings vs. AllianceBernstein Holding LP |
| Saratoga Investment vs. New Mountain Finance | Saratoga Investment vs. BlackRock TCP Capital | Saratoga Investment vs. Carlyle Secured Lending | Saratoga Investment vs. Sixth Street Specialty |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |