Correlation Between Parade Technologies and Senao Networks
Can any of the company-specific risk be diversified away by investing in both Parade Technologies and Senao Networks 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 Parade Technologies and Senao Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parade Technologies and Senao Networks, you can compare the effects of market volatilities on Parade Technologies and Senao Networks 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 Parade Technologies with a short position of Senao Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parade Technologies and Senao Networks.
Diversification Opportunities for Parade Technologies and Senao Networks
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Parade and Senao is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Parade Technologies and Senao Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senao Networks and Parade Technologies 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 Parade Technologies are associated (or correlated) with Senao Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senao Networks has no effect on the direction of Parade Technologies i.e., Parade Technologies and Senao Networks go up and down completely randomly.
Pair Corralation between Parade Technologies and Senao Networks
Assuming the 90 days trading horizon Parade Technologies is expected to under-perform the Senao Networks. But the stock apears to be less risky and, when comparing its historical volatility, Parade Technologies is 1.7 times less risky than Senao Networks. The stock trades about -0.05 of its potential returns per unit of risk. The Senao Networks is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 14,200 in Senao Networks on September 1, 2024 and sell it today you would earn a total of 6,450 from holding Senao Networks or generate 45.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Parade Technologies vs. Senao Networks
Performance |
| Timeline |
| Parade Technologies |
| Senao Networks |
Parade Technologies and Senao Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parade Technologies and Senao Networks
The main advantage of trading using opposite Parade Technologies and Senao Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parade Technologies position performs unexpectedly, Senao Networks 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 Senao Networks will offset losses from the drop in Senao Networks' long position.| Parade Technologies vs. Aspeed Technology | Parade Technologies vs. Silergy Corp | Parade Technologies vs. Novatek Microelectronics Corp | Parade Technologies vs. WIN Semiconductors |
| Senao Networks vs. Group Up Industrial | Senao Networks vs. Wiwynn Corp | Senao Networks vs. Senao International Co | Senao Networks vs. San Neng Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |