Correlation Between AllianceBernstein and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both AllianceBernstein and Senmiao Technology 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 AllianceBernstein and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AllianceBernstein Holding LP and Senmiao Technology, you can compare the effects of market volatilities on AllianceBernstein and Senmiao Technology 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 AllianceBernstein with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AllianceBernstein and Senmiao Technology.
Diversification Opportunities for AllianceBernstein and Senmiao Technology
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AllianceBernstein and Senmiao is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and AllianceBernstein 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 AllianceBernstein Holding LP are associated (or correlated) with Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of AllianceBernstein i.e., AllianceBernstein and Senmiao Technology go up and down completely randomly.
Pair Corralation between AllianceBernstein and Senmiao Technology
Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 4.53 times less return on investment than Senmiao Technology. But when comparing it to its historical volatility, AllianceBernstein Holding LP is 4.37 times less risky than Senmiao Technology. It trades about 0.05 of its potential returns per unit of risk. Senmiao Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Senmiao Technology on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Senmiao Technology or generate 67.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AllianceBernstein Holding LP vs. Senmiao Technology
Performance |
| Timeline |
| AllianceBernstein |
| Senmiao Technology |
AllianceBernstein and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AllianceBernstein and Senmiao Technology
The main advantage of trading using opposite AllianceBernstein and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AllianceBernstein position performs unexpectedly, Senmiao Technology 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 Senmiao Technology will offset losses from the drop in Senmiao Technology's long position.| AllianceBernstein vs. PowerUp Acquisition Corp | AllianceBernstein vs. Aurora Innovation | AllianceBernstein vs. HUMANA INC | AllianceBernstein vs. Aquagold International |
| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |