Correlation Between Senmiao Technology and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Eldorado Gold 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 Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Eldorado Gold Corp, you can compare the effects of market volatilities on Senmiao Technology and Eldorado Gold 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 Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Eldorado Gold.
Diversification Opportunities for Senmiao Technology and Eldorado Gold
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senmiao and Eldorado is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp 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 Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Eldorado Gold go up and down completely randomly.
Pair Corralation between Senmiao Technology and Eldorado Gold
Given the investment horizon of 90 days Senmiao Technology is expected to under-perform the Eldorado Gold. In addition to that, Senmiao Technology is 1.61 times more volatile than Eldorado Gold Corp. It trades about -0.08 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.0 per unit of volatility. If you would invest 1,504 in Eldorado Gold Corp on October 25, 2024 and sell it today you would lose (9.00) from holding Eldorado Gold Corp or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Eldorado Gold Corp
Performance |
| Timeline |
| Senmiao Technology |
| Eldorado Gold Corp |
Senmiao Technology and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Eldorado Gold
The main advantage of trading using opposite Senmiao Technology and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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