Correlation Between Donnelley Financial and SAITECH Global
Can any of the company-specific risk be diversified away by investing in both Donnelley Financial and SAITECH 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 Donnelley Financial and SAITECH Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Donnelley Financial Solutions and SAITECH Global, you can compare the effects of market volatilities on Donnelley Financial and SAITECH 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 Donnelley Financial with a short position of SAITECH Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Donnelley Financial and SAITECH Global.
Diversification Opportunities for Donnelley Financial and SAITECH Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Donnelley and SAITECH is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Donnelley Financial Solutions and SAITECH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAITECH Global and Donnelley 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 Donnelley Financial Solutions are associated (or correlated) with SAITECH Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAITECH Global has no effect on the direction of Donnelley Financial i.e., Donnelley Financial and SAITECH Global go up and down completely randomly.
Pair Corralation between Donnelley Financial and SAITECH Global
Given the investment horizon of 90 days Donnelley Financial is expected to generate 2.24 times less return on investment than SAITECH Global. But when comparing it to its historical volatility, Donnelley Financial Solutions is 6.6 times less risky than SAITECH Global. It trades about 0.06 of its potential returns per unit of risk. SAITECH Global is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 306.00 in SAITECH Global on August 30, 2024 and sell it today you would lose (230.00) from holding SAITECH Global or give up 75.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.31% |
| Values | Daily Returns |
Donnelley Financial Solutions vs. SAITECH Global
Performance |
| Timeline |
| Donnelley Financial |
| SAITECH Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Donnelley Financial and SAITECH Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Donnelley Financial and SAITECH Global
The main advantage of trading using opposite Donnelley Financial and SAITECH Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Donnelley Financial position performs unexpectedly, SAITECH 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 SAITECH Global will offset losses from the drop in SAITECH Global's long position.| Donnelley Financial vs. Scully Royalty | Donnelley Financial vs. Mercurity Fintech Holding | Donnelley Financial vs. Heritage Global | Donnelley Financial vs. Oppenheimer Holdings |
| SAITECH Global vs. Zhong Yang Financial | SAITECH Global vs. Netcapital | SAITECH Global vs. Magic Empire Global | SAITECH Global vs. Applied Blockchain |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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