Correlation Between Solowin Holdings and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and Apollo Global 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 Apollo Global 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 Apollo Global Management, you can compare the effects of market volatilities on Solowin Holdings and Apollo Global 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 Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and Apollo Global.
Diversification Opportunities for Solowin Holdings and Apollo Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Solowin and Apollo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and Apollo Global Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Management 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 Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Management has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and Apollo Global go up and down completely randomly.
Pair Corralation between Solowin Holdings and Apollo Global
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to under-perform the Apollo Global. In addition to that, Solowin Holdings is 4.35 times more volatile than Apollo Global Management. It trades about -0.1 of its total potential returns per unit of risk. Apollo Global Management is currently generating about -0.12 per unit of volatility. If you would invest 17,185 in Apollo Global Management on December 2, 2024 and sell it today you would lose (2,258) from holding Apollo Global Management or give up 13.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Solowin Holdings Ordinary vs. Apollo Global Management
Performance |
Timeline |
Solowin Holdings Ordinary |
Apollo Global Management |
Solowin Holdings and Apollo Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Solowin Holdings and Apollo Global
The main advantage of trading using opposite Solowin Holdings and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, Apollo Global 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 Apollo Global will offset losses from the drop in Apollo Global'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 |
Apollo Global vs. Carlyle Group | Apollo Global vs. Blackstone Group | Apollo Global vs. Brookfield Asset Management | Apollo Global vs. Ares Management LP |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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