Correlation Between SAIHEAT and MicroAlgo

Can any of the company-specific risk be diversified away by investing in both SAIHEAT and MicroAlgo 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 MicroAlgo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SAIHEAT Limited and MicroAlgo, you can compare the effects of market volatilities on SAIHEAT and MicroAlgo 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 MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIHEAT and MicroAlgo.

Diversification Opportunities for SAIHEAT and MicroAlgo

0.73

Correlation Coefficient

SAIHEAT  MicroAlgo

Poor diversification

The 3 months correlation between SAIHEAT and MicroAlgo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SAIHEAT Limited and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo 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 MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of SAIHEAT i.e., SAIHEAT and MicroAlgo go up and down completely randomly.

Pair Corralation between SAIHEAT and MicroAlgo

Given the investment horizon of 90 days SAIHEAT Limited is expected to under-perform the MicroAlgo. In addition to that, SAIHEAT is 1.22 times more volatile than MicroAlgo. It trades about -0.11 of its total potential returns per unit of risk. MicroAlgo is currently generating about -0.06 per unit of volatility. If you would invest  1,043  in MicroAlgo on July 28, 2025 and sell it today you would lose (105.00) from holding MicroAlgo or give up 10.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SAIHEAT Limited  vs.  MicroAlgo

SAIHEAT Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SAIHEAT Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal forward indicators, SAIHEAT demonstrated solid returns over the last few months and may actually be approaching a breakup point.

MicroAlgo

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with SAIHEAT and MicroAlgo

The main advantage of trading using opposite SAIHEAT and MicroAlgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIHEAT position performs unexpectedly, MicroAlgo 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 MicroAlgo will offset losses from the drop in MicroAlgo's long position.

The idea behind SAIHEAT Limited and MicroAlgo pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.