Correlation Between Senmiao Technology and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Bright Scholar 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 Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Bright Scholar Education, you can compare the effects of market volatilities on Senmiao Technology and Bright Scholar 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 Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Bright Scholar.
Diversification Opportunities for Senmiao Technology and Bright Scholar
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Senmiao and Bright is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Bright Scholar Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Scholar Education 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 Bright Scholar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Scholar Education has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Bright Scholar go up and down completely randomly.
Pair Corralation between Senmiao Technology and Bright Scholar
Given the investment horizon of 90 days Senmiao Technology is expected to generate 1.08 times more return on investment than Bright Scholar. However, Senmiao Technology is 1.08 times more volatile than Bright Scholar Education. It trades about 0.08 of its potential returns per unit of risk. Bright Scholar Education is currently generating about 0.06 per unit of risk. If you would invest 42.00 in Senmiao Technology on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Senmiao Technology or generate 111.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Senmiao Technology vs. Bright Scholar Education
Performance |
| Timeline |
| Senmiao Technology |
| Bright Scholar Education |
Senmiao Technology and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Bright Scholar
The main advantage of trading using opposite Senmiao Technology and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Bright Scholar 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 Bright Scholar will offset losses from the drop in Bright Scholar's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Bright Scholar vs. American Public Education | Bright Scholar vs. ATA Creativity Global | Bright Scholar vs. Cogna Educacao SA | Bright Scholar vs. Adtalem Global Education |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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