Correlation Between Solowin Holdings and SK Growth
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and SK Growth 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 SK Growth 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 SK Growth Opportunities, you can compare the effects of market volatilities on Solowin Holdings and SK Growth 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 SK Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and SK Growth.
Diversification Opportunities for Solowin Holdings and SK Growth
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solowin and SKGR is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and SK Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Growth Opportunities 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 SK Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Growth Opportunities has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and SK Growth go up and down completely randomly.
Pair Corralation between Solowin Holdings and SK Growth
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to under-perform the SK Growth. In addition to that, Solowin Holdings is 15.28 times more volatile than SK Growth Opportunities. It trades about -0.06 of its total potential returns per unit of risk. SK Growth Opportunities is currently generating about 0.17 per unit of volatility. If you would invest 1,151 in SK Growth Opportunities on September 13, 2024 and sell it today you would earn a total of 11.00 from holding SK Growth Opportunities or generate 0.96% 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. SK Growth Opportunities
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| SK Growth Opportunities |
Solowin Holdings and SK Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and SK Growth
The main advantage of trading using opposite Solowin Holdings and SK Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, SK Growth 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 SK Growth will offset losses from the drop in SK Growth's long position.| Solowin Holdings vs. Franklin Universal Closed | Solowin Holdings vs. Embrace Change Acquisition | Solowin Holdings vs. BlackRock Energy and | Solowin Holdings vs. BlackRock Core Bond |
| SK Growth vs. Four Leaf Acquisition | SK Growth vs. WinVest Acquisition Corp | SK Growth vs. Thunder Bridge Capital | SK Growth vs. Pearl Holdings Acquisition |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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