Correlation Between SAIHEAT and Prenetics Global
Can any of the company-specific risk be diversified away by investing in both SAIHEAT and Prenetics 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 Prenetics 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 Prenetics Global, you can compare the effects of market volatilities on SAIHEAT and Prenetics 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 Prenetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIHEAT and Prenetics Global.
Diversification Opportunities for SAIHEAT and Prenetics Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAIHEAT and Prenetics is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SAIHEAT Limited and Prenetics Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prenetics Global 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 Prenetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prenetics Global has no effect on the direction of SAIHEAT i.e., SAIHEAT and Prenetics Global go up and down completely randomly.
Pair Corralation between SAIHEAT and Prenetics Global
Assuming the 90 days horizon SAIHEAT Limited is expected to under-perform the Prenetics Global. In addition to that, SAIHEAT is 3.64 times more volatile than Prenetics Global. It trades about -0.03 of its total potential returns per unit of risk. Prenetics Global is currently generating about -0.04 per unit of volatility. 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 |
SAIHEAT Limited vs. Prenetics Global
Performance |
| Timeline |
| SAIHEAT Limited |
| Prenetics Global |
SAIHEAT and Prenetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAIHEAT and Prenetics Global
The main advantage of trading using opposite SAIHEAT and Prenetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIHEAT position performs unexpectedly, Prenetics 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 Prenetics Global will offset losses from the drop in Prenetics Global's long position.| SAIHEAT vs. Willamette Valley Vineyards | SAIHEAT vs. Franklin Street Properties | SAIHEAT vs. Fomento Economico Mexicano | SAIHEAT vs. Mesa Air Group |
| Prenetics Global vs. Neogen | Prenetics Global vs. Qiagen NV | Prenetics Global vs. Aclaris Therapeutics | Prenetics Global vs. Fonar |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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