Correlation Between Senao Networks and San Neng
Can any of the company-specific risk be diversified away by investing in both Senao Networks and San Neng 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 Senao Networks and San Neng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senao Networks and San Neng Group, you can compare the effects of market volatilities on Senao Networks and San Neng 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 Senao Networks with a short position of San Neng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senao Networks and San Neng.
Diversification Opportunities for Senao Networks and San Neng
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senao and San is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Senao Networks and San Neng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Neng Group and Senao Networks 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 Senao Networks are associated (or correlated) with San Neng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Neng Group has no effect on the direction of Senao Networks i.e., Senao Networks and San Neng go up and down completely randomly.
Pair Corralation between Senao Networks and San Neng
Assuming the 90 days trading horizon Senao Networks is expected to generate 8.23 times more return on investment than San Neng. However, Senao Networks is 8.23 times more volatile than San Neng Group. It trades about 0.33 of its potential returns per unit of risk. San Neng Group is currently generating about -0.13 per unit of risk. If you would invest 15,600 in Senao Networks on August 26, 2024 and sell it today you would earn a total of 5,050 from holding Senao Networks or generate 32.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senao Networks vs. San Neng Group
Performance |
| Timeline |
| Senao Networks |
| San Neng Group |
Senao Networks and San Neng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senao Networks and San Neng
The main advantage of trading using opposite Senao Networks and San Neng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senao Networks position performs unexpectedly, San Neng 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 San Neng will offset losses from the drop in San Neng's long position.| Senao Networks vs. Group Up Industrial | Senao Networks vs. Wiwynn Corp | Senao Networks vs. Senao International Co | Senao Networks vs. San Neng Group |
| San Neng vs. Farcent Enterprise Co | San Neng vs. Ruentex Development Co | San Neng vs. Symtek Automation Asia | San Neng vs. CTCI Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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