Correlation Between SAIHEAT and Digimarc
Can any of the company-specific risk be diversified away by investing in both SAIHEAT and Digimarc 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 Digimarc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAIHEAT Limited and Digimarc, you can compare the effects of market volatilities on SAIHEAT and Digimarc 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 Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIHEAT and Digimarc.
Diversification Opportunities for SAIHEAT and Digimarc
Poor diversification
The 3 months correlation between SAIHEAT and Digimarc is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SAIHEAT Limited and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc 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 Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of SAIHEAT i.e., SAIHEAT and Digimarc go up and down completely randomly.
Pair Corralation between SAIHEAT and Digimarc
Assuming the 90 days horizon SAIHEAT Limited is expected to generate 9.04 times more return on investment than Digimarc. However, SAIHEAT is 9.04 times more volatile than Digimarc. It trades about 0.16 of its potential returns per unit of risk. Digimarc is currently generating about 0.06 per unit of risk. If you would invest 6.70 in SAIHEAT Limited on August 25, 2024 and sell it today you would earn a total of 8.30 from holding SAIHEAT Limited or generate 123.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 43.31% |
| Values | Daily Returns |
SAIHEAT Limited vs. Digimarc
Performance |
| Timeline |
| SAIHEAT Limited |
| Digimarc |
SAIHEAT and Digimarc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAIHEAT and Digimarc
The main advantage of trading using opposite SAIHEAT and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIHEAT position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.| SAIHEAT vs. JetBlue Airways Corp | SAIHEAT vs. Air Transport Services | SAIHEAT vs. Alaska Air Group | SAIHEAT vs. NioCorp Developments Ltd |
| Digimarc vs. Magic Empire Global | Digimarc vs. Zhong Yang Financial | Digimarc vs. Netcapital | Digimarc vs. Lazard |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |