Correlation Between Senmiao Technology and Aldel Financial
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Aldel Financial 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 Senmiao Technology and Aldel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Aldel Financial II, you can compare the effects of market volatilities on Senmiao Technology and Aldel Financial 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 Senmiao Technology with a short position of Aldel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Aldel Financial.
Diversification Opportunities for Senmiao Technology and Aldel Financial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senmiao and Aldel is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Aldel Financial II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldel Financial II and Senmiao Technology 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 Senmiao Technology are associated (or correlated) with Aldel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldel Financial II has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Aldel Financial go up and down completely randomly.
Pair Corralation between Senmiao Technology and Aldel Financial
Given the investment horizon of 90 days Senmiao Technology is expected to under-perform the Aldel Financial. In addition to that, Senmiao Technology is 26.25 times more volatile than Aldel Financial II. It trades about -0.27 of its total potential returns per unit of risk. Aldel Financial II is currently generating about 0.14 per unit of volatility. If you would invest 993.00 in Aldel Financial II on November 5, 2024 and sell it today you would earn a total of 3.00 from holding Aldel Financial II or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Aldel Financial II
Performance |
| Timeline |
| Senmiao Technology |
| Aldel Financial II |
Senmiao Technology and Aldel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Aldel Financial
The main advantage of trading using opposite Senmiao Technology and Aldel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Aldel Financial 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 Aldel Financial will offset losses from the drop in Aldel Financial's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Aldel Financial vs. HomeTrust Bancshares | Aldel Financial vs. Mid Atlantic Home Health | Aldel Financial vs. Reservoir Media | Aldel Financial vs. Taylor Morn Home |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |