Correlation Between SAIHEAT and ISpecimen
Can any of the company-specific risk be diversified away by investing in both SAIHEAT and ISpecimen 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 ISpecimen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAIHEAT Limited and iSpecimen, you can compare the effects of market volatilities on SAIHEAT and ISpecimen 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 ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIHEAT and ISpecimen.
Diversification Opportunities for SAIHEAT and ISpecimen
Very good diversification
The 3 months correlation between SAIHEAT and ISpecimen is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SAIHEAT Limited and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of SAIHEAT i.e., SAIHEAT and ISpecimen go up and down completely randomly.
Pair Corralation between SAIHEAT and ISpecimen
Assuming the 90 days horizon SAIHEAT Limited is expected to under-perform the ISpecimen. In addition to that, SAIHEAT is 3.27 times more volatile than iSpecimen. It trades about -0.03 of its total potential returns per unit of risk. iSpecimen is currently generating about 0.01 per unit of volatility. If you would invest 432.00 in iSpecimen on August 28, 2024 and sell it today you would lose (8.00) from holding iSpecimen or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
SAIHEAT Limited vs. iSpecimen
Performance |
| Timeline |
| SAIHEAT Limited |
| iSpecimen |
SAIHEAT and ISpecimen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAIHEAT and ISpecimen
The main advantage of trading using opposite SAIHEAT and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIHEAT position performs unexpectedly, ISpecimen 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 ISpecimen will offset losses from the drop in ISpecimen's long position.| SAIHEAT vs. Willamette Valley Vineyards | SAIHEAT vs. Franklin Street Properties | SAIHEAT vs. Fomento Economico Mexicano | SAIHEAT vs. Mesa Air Group |
| ISpecimen vs. Fonar | ISpecimen vs. Castle Biosciences | ISpecimen vs. Exagen Inc | ISpecimen vs. OncoCyte Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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