Correlation Between Virtu Financial and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and SAIHEAT 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 Virtu Financial and SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and SAIHEAT Limited, you can compare the effects of market volatilities on Virtu Financial and SAIHEAT 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 Virtu Financial with a short position of SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and SAIHEAT.
Diversification Opportunities for Virtu Financial and SAIHEAT
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Virtu and SAIHEAT is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited and Virtu Financial 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 Virtu Financial are associated (or correlated) with SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of Virtu Financial i.e., Virtu Financial and SAIHEAT go up and down completely randomly.
Pair Corralation between Virtu Financial and SAIHEAT
Given the investment horizon of 90 days Virtu Financial is expected to generate 0.12 times more return on investment than SAIHEAT. However, Virtu Financial is 8.53 times less risky than SAIHEAT. It trades about -0.19 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about -0.5 per unit of risk. If you would invest 3,831 in Virtu Financial on November 27, 2024 and sell it today you would lose (292.00) from holding Virtu Financial or give up 7.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 20.0% |
| Values | Daily Returns |
Virtu Financial vs. SAIHEAT Limited
Performance |
| Timeline |
| Virtu Financial |
| SAIHEAT Limited |
Risk-Adjusted Performance
OK
Weak | Strong |
Virtu Financial and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and SAIHEAT
The main advantage of trading using opposite Virtu Financial and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, SAIHEAT 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 SAIHEAT will offset losses from the drop in SAIHEAT's long position.| Virtu Financial vs. Perella Weinberg Partners | Virtu Financial vs. Evercore Partners | Virtu Financial vs. Lazard | Virtu Financial vs. Piper Sandler Companies |
| SAIHEAT vs. Skillz Platform | SAIHEAT vs. SEI Investments | SAIHEAT vs. Hochschild Mining PLC | SAIHEAT vs. Playstudios |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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