Correlation Between Check Cap and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Check Cap 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 Check Cap and SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Cap and SAIHEAT Limited, you can compare the effects of market volatilities on Check Cap 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 Check Cap with a short position of SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Cap and SAIHEAT.
Diversification Opportunities for Check Cap and SAIHEAT
Pay attention - limited upside
The 3 months correlation between Check and SAIHEAT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Check Cap and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited and Check Cap 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 Check Cap 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 Check Cap i.e., Check Cap and SAIHEAT go up and down completely randomly.
Pair Corralation between Check Cap and SAIHEAT
Given the investment horizon of 90 days Check Cap is expected to under-perform the SAIHEAT. But the stock apears to be less risky and, when comparing its historical volatility, Check Cap is 6.8 times less risky than SAIHEAT. The stock trades about -0.11 of its potential returns per unit of risk. The SAIHEAT Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4.00 in SAIHEAT Limited on August 24, 2024 and sell it today you would earn a total of 10.85 from holding SAIHEAT Limited or generate 271.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 42.0% |
| Values | Daily Returns |
Check Cap vs. SAIHEAT Limited
Performance |
| Timeline |
| Check Cap |
| SAIHEAT Limited |
Check Cap and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Cap and SAIHEAT
The main advantage of trading using opposite Check Cap and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Cap 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.| Check Cap vs. Fonar | Check Cap vs. Burning Rock Biotech | Check Cap vs. Sera Prognostics | Check Cap vs. Psychemedics |
| SAIHEAT vs. Goldman Sachs Group | SAIHEAT vs. Moelis Co | SAIHEAT vs. Morgan Stanley | SAIHEAT vs. Stifel Financial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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