Correlation Between ANT and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both ANT and SAIHEAT 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 ANT and SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and SAIHEAT Limited, you can compare the effects of market volatilities on ANT and SAIHEAT 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 ANT with a short position of SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and SAIHEAT.
Diversification Opportunities for ANT and SAIHEAT
Significant diversification
The 3 months correlation between ANT and SAIHEAT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ANT and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited and ANT 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 ANT are associated (or correlated) with SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of ANT i.e., ANT and SAIHEAT go up and down completely randomly.
Pair Corralation between ANT and SAIHEAT
Assuming the 90 days trading horizon ANT is expected to generate 9.05 times more return on investment than SAIHEAT. However, ANT is 9.05 times more volatile than SAIHEAT Limited. It trades about 0.16 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about 0.05 per unit of risk. If you would invest 610.00 in ANT on November 2, 2024 and sell it today you would lose (463.00) from holding ANT or give up 75.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.26% |
| Values | Daily Returns |
ANT vs. SAIHEAT Limited
Performance |
| Timeline |
| ANT |
| SAIHEAT Limited |
ANT and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and SAIHEAT
The main advantage of trading using opposite ANT and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, SAIHEAT 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 SAIHEAT will offset losses from the drop in SAIHEAT's long position.The idea behind ANT and SAIHEAT Limited 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.| SAIHEAT vs. Douglas Emmett | SAIHEAT vs. Amkor Technology | SAIHEAT vs. InfuSystems Holdings | SAIHEAT vs. RBC Bearings Incorporated |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |