Correlation Between Senmiao Technology and Elutia
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Elutia 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 Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Elutia Inc, you can compare the effects of market volatilities on Senmiao Technology and Elutia 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 Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Elutia.
Diversification Opportunities for Senmiao Technology and Elutia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Senmiao and Elutia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia Inc 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 Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Elutia go up and down completely randomly.
Pair Corralation between Senmiao Technology and Elutia
Given the investment horizon of 90 days Senmiao Technology is expected to generate 0.38 times more return on investment than Elutia. However, Senmiao Technology is 2.6 times less risky than Elutia. It trades about 0.09 of its potential returns per unit of risk. Elutia Inc is currently generating about -0.06 per unit of risk. If you would invest 88.00 in Senmiao Technology on October 13, 2024 and sell it today you would earn a total of 5.00 from holding Senmiao Technology or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Elutia Inc
Performance |
| Timeline |
| Senmiao Technology |
| Elutia Inc |
Senmiao Technology and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Elutia
The main advantage of trading using opposite Senmiao Technology and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Elutia vs. Western Acquisition Ventures | Elutia vs. Aldel Financial II | Elutia vs. Allegion PLC | Elutia vs. Emerson Electric |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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