Correlation Between Grid Dynamics and SASI Old

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

By analyzing existing cross correlation between Grid Dynamics Holdings and SASI Old, you can compare the effects of market volatilities on Grid Dynamics and SASI Old 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 Grid Dynamics with a short position of SASI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grid Dynamics and SASI Old.

Diversification Opportunities for Grid Dynamics and SASI Old

-0.44

Correlation Coefficient

Grid Dynamics  SASI Old

Very good diversification

The 3 months correlation between Grid and SASI is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Grid Dynamics Holdings and SASI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASI Old and Grid Dynamics 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 Grid Dynamics Holdings are associated (or correlated) with SASI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASI Old has no effect on the direction of Grid Dynamics i.e., Grid Dynamics and SASI Old go up and down completely randomly.

Pair Corralation between Grid Dynamics and SASI Old

If you would invest  1,195  in Grid Dynamics Holdings on October 20, 2024 and sell it today you would earn a total of  911.00  from holding Grid Dynamics Holdings or generate 76.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.79%
Values	Daily Returns

Grid Dynamics Holdings  vs.  SASI Old

Grid Dynamics Holdings

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Grid Dynamics Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Grid Dynamics displayed solid returns over the last few months and may actually be approaching a breakup point.

SASI Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SASI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, SASI Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Grid Dynamics and SASI Old

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

The idea behind Grid Dynamics Holdings and SASI Old 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..