Correlation Between SAIHEAT and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both SAIHEAT and Marfrig 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 SAIHEAT and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAIHEAT Limited and Marfrig Global Foods, you can compare the effects of market volatilities on SAIHEAT and Marfrig 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 SAIHEAT with a short position of Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIHEAT and Marfrig Global.
Diversification Opportunities for SAIHEAT and Marfrig Global
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SAIHEAT and Marfrig is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SAIHEAT Limited and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods and SAIHEAT 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 SAIHEAT Limited are associated (or correlated) with Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of SAIHEAT i.e., SAIHEAT and Marfrig Global go up and down completely randomly.
Pair Corralation between SAIHEAT and Marfrig Global
Given the investment horizon of 90 days SAIHEAT Limited is expected to generate 3.34 times more return on investment than Marfrig Global. However, SAIHEAT is 3.34 times more volatile than Marfrig Global Foods. It trades about 0.11 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.0 per unit of risk. If you would invest 76.00 in SAIHEAT Limited on November 8, 2024 and sell it today you would earn a total of 11.00 from holding SAIHEAT Limited or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SAIHEAT Limited vs. Marfrig Global Foods
Performance |
| Timeline |
| SAIHEAT Limited |
| Marfrig Global Foods |
SAIHEAT and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAIHEAT and Marfrig Global
The main advantage of trading using opposite SAIHEAT and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIHEAT position performs unexpectedly, Marfrig 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position.| SAIHEAT vs. Multi Ways Holdings | SAIHEAT vs. Freedom Holding Corp | SAIHEAT vs. Alternative Investment | SAIHEAT vs. The Joint Corp |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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