Correlation Between Solowin Holdings and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and Thunder Bridge 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 Thunder Bridge 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 Thunder Bridge Capital, you can compare the effects of market volatilities on Solowin Holdings and Thunder Bridge 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 Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and Thunder Bridge.
Diversification Opportunities for Solowin Holdings and Thunder Bridge
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solowin and Thunder is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and Thunder Bridge go up and down completely randomly.
Pair Corralation between Solowin Holdings and Thunder Bridge
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to under-perform the Thunder Bridge. In addition to that, Solowin Holdings is 2.63 times more volatile than Thunder Bridge Capital. It trades about -0.05 of its total potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.18 per unit of volatility. If you would invest 1,059 in Thunder Bridge Capital on September 4, 2024 and sell it today you would earn a total of 53.00 from holding Thunder Bridge Capital or generate 5.0% 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. Thunder Bridge Capital
Performance |
| Timeline |
| Solowin Holdings Ordinary |
| Thunder Bridge Capital |
Solowin Holdings and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solowin Holdings and Thunder Bridge
The main advantage of trading using opposite Solowin Holdings and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, Thunder Bridge 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 Thunder Bridge will offset losses from the drop in Thunder Bridge'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 |
| Thunder Bridge vs. Four Leaf Acquisition | Thunder Bridge vs. WinVest Acquisition Corp | Thunder Bridge vs. SK Growth Opportunities | Thunder Bridge 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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