Correlation Between Grid Dynamics and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Grid Dynamics 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 Grid Dynamics and SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grid Dynamics Holdings and SAIHEAT Limited, you can compare the effects of market volatilities on Grid Dynamics 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 Grid Dynamics with a short position of SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grid Dynamics and SAIHEAT.
Diversification Opportunities for Grid Dynamics and SAIHEAT
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grid and SAIHEAT is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Grid Dynamics Holdings and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited and Grid Dynamics 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 Grid Dynamics Holdings 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 Grid Dynamics i.e., Grid Dynamics and SAIHEAT go up and down completely randomly.
Pair Corralation between Grid Dynamics and SAIHEAT
Given the investment horizon of 90 days Grid Dynamics Holdings is expected to generate 0.23 times more return on investment than SAIHEAT. However, Grid Dynamics Holdings is 4.26 times less risky than SAIHEAT. It trades about 0.2 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about -0.03 per unit of risk. If you would invest 1,564 in Grid Dynamics Holdings on August 26, 2024 and sell it today you would earn a total of 262.00 from holding Grid Dynamics Holdings or generate 16.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Grid Dynamics Holdings vs. SAIHEAT Limited
Performance |
| Timeline |
| Grid Dynamics Holdings |
| SAIHEAT Limited |
Grid Dynamics and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grid Dynamics and SAIHEAT
The main advantage of trading using opposite Grid Dynamics and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grid Dynamics 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.| Grid Dynamics vs. ExlService Holdings | Grid Dynamics vs. ASGN Inc | Grid Dynamics vs. WNS Holdings | Grid Dynamics vs. Gartner |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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