Correlation Between SAITECH Global and Greenhill
Can any of the company-specific risk be diversified away by investing in both SAITECH Global and Greenhill 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 SAITECH Global and Greenhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAITECH Global and Greenhill Co, you can compare the effects of market volatilities on SAITECH Global and Greenhill 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 SAITECH Global with a short position of Greenhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAITECH Global and Greenhill.
Diversification Opportunities for SAITECH Global and Greenhill
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SAITECH and Greenhill is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SAITECH Global and Greenhill Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenhill and SAITECH 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 SAITECH Global are associated (or correlated) with Greenhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenhill has no effect on the direction of SAITECH Global i.e., SAITECH Global and Greenhill go up and down completely randomly.
Pair Corralation between SAITECH Global and Greenhill
If you would invest 1,473 in Greenhill Co on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Greenhill Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAITECH Global vs. Greenhill Co
Performance |
| Timeline |
| SAITECH Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SAITECH Global and Greenhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAITECH Global and Greenhill
The main advantage of trading using opposite SAITECH Global and Greenhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAITECH Global position performs unexpectedly, Greenhill 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 Greenhill will offset losses from the drop in Greenhill's long position.| SAITECH Global vs. Zhong Yang Financial | SAITECH Global vs. Netcapital | SAITECH Global vs. Magic Empire Global | SAITECH Global vs. Applied Blockchain |
| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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