Correlation Between Prenetics Global and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Prenetics Global 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 Prenetics Global and SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prenetics Global and SAIHEAT Limited, you can compare the effects of market volatilities on Prenetics Global 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 Prenetics Global with a short position of SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prenetics Global and SAIHEAT.
Diversification Opportunities for Prenetics Global and SAIHEAT
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Prenetics and SAIHEAT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Prenetics Global and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited and Prenetics Global 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 Prenetics Global 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 Prenetics Global i.e., Prenetics Global and SAIHEAT go up and down completely randomly.
Pair Corralation between Prenetics Global and SAIHEAT
Considering the 90-day investment horizon Prenetics Global is expected to generate 0.27 times more return on investment than SAIHEAT. However, Prenetics Global is 3.64 times less risky than SAIHEAT. It trades about -0.04 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about -0.03 per unit of risk. If you would invest 477.00 in Prenetics Global on August 28, 2024 and sell it today you would lose (26.00) from holding Prenetics Global or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Prenetics Global vs. SAIHEAT Limited
Performance |
| Timeline |
| Prenetics Global |
| SAIHEAT Limited |
Prenetics Global and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prenetics Global and SAIHEAT
The main advantage of trading using opposite Prenetics Global and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prenetics Global 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.| Prenetics Global vs. Neogen | Prenetics Global vs. Qiagen NV | Prenetics Global vs. Aclaris Therapeutics | Prenetics Global vs. Fonar |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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