Correlation Between SAIHEAT and EPAM Systems
Can any of the company-specific risk be diversified away by investing in both SAIHEAT and EPAM Systems 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 EPAM Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAIHEAT Limited and EPAM Systems, you can compare the effects of market volatilities on SAIHEAT and EPAM Systems 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 EPAM Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIHEAT and EPAM Systems.
Diversification Opportunities for SAIHEAT and EPAM Systems
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAIHEAT and EPAM is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SAIHEAT Limited and EPAM Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPAM Systems 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 EPAM Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPAM Systems has no effect on the direction of SAIHEAT i.e., SAIHEAT and EPAM Systems go up and down completely randomly.
Pair Corralation between SAIHEAT and EPAM Systems
Assuming the 90 days horizon SAIHEAT Limited is expected to generate 10.29 times more return on investment than EPAM Systems. However, SAIHEAT is 10.29 times more volatile than EPAM Systems. It trades about 0.16 of its potential returns per unit of risk. EPAM Systems is currently generating about -0.02 per unit of risk. If you would invest 10.00 in SAIHEAT Limited on May 4, 2025 and sell it today you would earn a total of 5.00 from holding SAIHEAT Limited or generate 50.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 69.84% |
Values | Daily Returns |
SAIHEAT Limited vs. EPAM Systems
Performance |
Timeline |
SAIHEAT Limited |
EPAM Systems |
SAIHEAT and EPAM Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SAIHEAT and EPAM Systems
The main advantage of trading using opposite SAIHEAT and EPAM Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIHEAT position performs unexpectedly, EPAM Systems 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 EPAM Systems will offset losses from the drop in EPAM Systems' long position.SAIHEAT vs. IPG Photonics | SAIHEAT vs. Universal Display | SAIHEAT vs. Amkor Technology | SAIHEAT vs. Planet Fitness |
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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 Stocks Directory module to find actively traded stocks across global markets.
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