Correlation Between Stifel Financial and Solowin Holdings
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Solowin Holdings 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 Stifel Financial and Solowin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Solowin Holdings Ordinary, you can compare the effects of market volatilities on Stifel Financial and Solowin Holdings 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 Stifel Financial with a short position of Solowin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Solowin Holdings.
Diversification Opportunities for Stifel Financial and Solowin Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stifel and Solowin is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Solowin Holdings Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solowin Holdings Ordinary and Stifel Financial 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 Stifel Financial are associated (or correlated) with Solowin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solowin Holdings Ordinary has no effect on the direction of Stifel Financial i.e., Stifel Financial and Solowin Holdings go up and down completely randomly.
Pair Corralation between Stifel Financial and Solowin Holdings
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 0.2 times more return on investment than Solowin Holdings. However, Stifel Financial is 4.92 times less risky than Solowin Holdings. It trades about -0.07 of its potential returns per unit of risk. Solowin Holdings Ordinary is currently generating about -0.1 per unit of risk. If you would invest 11,474 in Stifel Financial on December 1, 2024 and sell it today you would lose (855.00) from holding Stifel Financial or give up 7.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Stifel Financial vs. Solowin Holdings Ordinary
Performance |
Timeline |
Stifel Financial |
Solowin Holdings Ordinary |
Stifel Financial and Solowin Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stifel Financial and Solowin Holdings
The main advantage of trading using opposite Stifel Financial and Solowin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Solowin Holdings 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 Solowin Holdings will offset losses from the drop in Solowin Holdings' long position.Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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