Correlation Between Piper Sandler and SAITECH Global
Can any of the company-specific risk be diversified away by investing in both Piper Sandler 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 Piper Sandler and SAITECH Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piper Sandler Companies and SAITECH Global, you can compare the effects of market volatilities on Piper Sandler 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 Piper Sandler with a short position of SAITECH Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piper Sandler and SAITECH Global.
Diversification Opportunities for Piper Sandler and SAITECH Global
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piper and SAITECH is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Piper Sandler Companies and SAITECH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAITECH Global and Piper Sandler 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 Piper Sandler Companies 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 Piper Sandler i.e., Piper Sandler and SAITECH Global go up and down completely randomly.
Pair Corralation between Piper Sandler and SAITECH Global
Given the investment horizon of 90 days Piper Sandler Companies is expected to generate 0.29 times more return on investment than SAITECH Global. However, Piper Sandler Companies is 3.4 times less risky than SAITECH Global. It trades about 0.16 of its potential returns per unit of risk. SAITECH Global is currently generating about 0.02 per unit of risk. If you would invest 15,232 in Piper Sandler Companies on August 26, 2024 and sell it today you would earn a total of 18,839 from holding Piper Sandler Companies or generate 123.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.53% |
| Values | Daily Returns |
Piper Sandler Companies vs. SAITECH Global
Performance |
| Timeline |
| Piper Sandler Companies |
| SAITECH Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Piper Sandler and SAITECH Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piper Sandler and SAITECH Global
The main advantage of trading using opposite Piper Sandler and SAITECH Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piper Sandler 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.| Piper Sandler vs. Perella Weinberg Partners | Piper Sandler vs. Evercore Partners | Piper Sandler vs. Lazard | Piper Sandler vs. Moelis Co |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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