Correlation Between Senmiao Technology and Consumer Portfolio
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Consumer Portfolio 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 Consumer Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Consumer Portfolio Services, you can compare the effects of market volatilities on Senmiao Technology and Consumer Portfolio 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 Consumer Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Consumer Portfolio.
Diversification Opportunities for Senmiao Technology and Consumer Portfolio
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Senmiao and Consumer is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Consumer Portfolio Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Portfolio 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 Consumer Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Portfolio has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Consumer Portfolio go up and down completely randomly.
Pair Corralation between Senmiao Technology and Consumer Portfolio
Given the investment horizon of 90 days Senmiao Technology is expected to generate 1.26 times less return on investment than Consumer Portfolio. In addition to that, Senmiao Technology is 1.74 times more volatile than Consumer Portfolio Services. It trades about 0.03 of its total potential returns per unit of risk. Consumer Portfolio Services is currently generating about 0.07 per unit of volatility. If you would invest 828.00 in Consumer Portfolio Services on August 29, 2024 and sell it today you would earn a total of 194.00 from holding Consumer Portfolio Services or generate 23.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Consumer Portfolio Services
Performance |
| Timeline |
| Senmiao Technology |
| Consumer Portfolio |
Senmiao Technology and Consumer Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Consumer Portfolio
The main advantage of trading using opposite Senmiao Technology and Consumer Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Consumer Portfolio 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 Consumer Portfolio will offset losses from the drop in Consumer Portfolio's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Consumer Portfolio vs. Visa Class A | Consumer Portfolio vs. Mastercard | Consumer Portfolio vs. Discover Financial Services |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |