Correlation Between Raymond James and Solowin Holdings

Can any of the company-specific risk be diversified away by investing in both Raymond James 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 Raymond James and Solowin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Raymond James Financial and Solowin Holdings Ordinary, you can compare the effects of market volatilities on Raymond James 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 Raymond James with a short position of Solowin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Solowin Holdings.

Diversification Opportunities for Raymond James and Solowin Holdings

-0.4

Correlation Coefficient

Raymond James  Solowin Holdings

Very good diversification

The 3 months correlation between Raymond and Solowin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James 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 Raymond James 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 Raymond James 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 Raymond James i.e., Raymond James and Solowin Holdings go up and down completely randomly.

Pair Corralation between Raymond James and Solowin Holdings

Assuming the 90 days trading horizon Raymond James is expected to generate 24.64 times less return on investment than Solowin Holdings. But when comparing it to its historical volatility, Raymond James Financial is 61.16 times less risky than Solowin Holdings. It trades about 0.12 of its potential returns per unit of risk. Solowin Holdings Ordinary is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  608.00  in Solowin Holdings Ordinary on September 12, 2024 and sell it today you would lose (384.00) from holding Solowin Holdings Ordinary or give up 63.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.34%
Values	Daily Returns

Raymond James Financial  vs.  Solowin Holdings Ordinary

Raymond James Financial

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Raymond James Financial are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Raymond James is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Solowin Holdings Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Solowin Holdings Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Raymond James and Solowin Holdings

The main advantage of trading using opposite Raymond James and Solowin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James 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.

The idea behind Raymond James Financial and Solowin Holdings Ordinary pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.