Correlation Between Senmiao Technology and BioNTech
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and BioNTech 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 BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and BioNTech SE, you can compare the effects of market volatilities on Senmiao Technology and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and BioNTech.
Diversification Opportunities for Senmiao Technology and BioNTech
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senmiao and BioNTech is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and BioNTech go up and down completely randomly.
Pair Corralation between Senmiao Technology and BioNTech
Given the investment horizon of 90 days Senmiao Technology is expected to generate 2.44 times more return on investment than BioNTech. However, Senmiao Technology is 2.44 times more volatile than BioNTech SE. It trades about 0.04 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.02 per unit of risk. If you would invest 77.00 in Senmiao Technology on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Senmiao Technology or generate 15.58% 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. BioNTech SE
Performance |
| Timeline |
| Senmiao Technology |
| BioNTech SE |
Senmiao Technology and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and BioNTech
The main advantage of trading using opposite Senmiao Technology and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| BioNTech vs. Cue Biopharma | BioNTech vs. Eliem Therapeutics | BioNTech vs. Inhibrx | BioNTech vs. Molecular Partners AG |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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