Correlation Between 9F and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both 9F 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 9F and SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 9F Inc and SAIHEAT Limited, you can compare the effects of market volatilities on 9F 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 9F with a short position of SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of 9F and SAIHEAT.
Diversification Opportunities for 9F and SAIHEAT
Very good diversification
The 3 months correlation between 9F and SAIHEAT is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding 9F Inc and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited and 9F 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 9F Inc 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 9F i.e., 9F and SAIHEAT go up and down completely randomly.
Pair Corralation between 9F and SAIHEAT
Considering the 90-day investment horizon 9F is expected to generate 2.56 times less return on investment than SAIHEAT. But when comparing it to its historical volatility, 9F Inc is 1.91 times less risky than SAIHEAT. It trades about 0.03 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 120.00 in SAIHEAT Limited on November 27, 2024 and sell it today you would lose (52.00) from holding SAIHEAT Limited or give up 43.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
9F Inc vs. SAIHEAT Limited
Performance |
| Timeline |
| 9F Inc |
| SAIHEAT Limited |
9F and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 9F and SAIHEAT
The main advantage of trading using opposite 9F and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 9F 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 9F Inc 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. Cedar Realty Trust | SAIHEAT vs. The Joint Corp | SAIHEAT vs. Futuretech II Acquisition | SAIHEAT vs. IDP Education Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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