Correlation Between Senmiao Technology and Ihuman
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Ihuman Inc, you can compare the effects of market volatilities on Senmiao Technology and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Ihuman.
Diversification Opportunities for Senmiao Technology and Ihuman
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Senmiao and Ihuman is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Ihuman go up and down completely randomly.
Pair Corralation between Senmiao Technology and Ihuman
Given the investment horizon of 90 days Senmiao Technology is expected to generate 2.14 times more return on investment than Ihuman. However, Senmiao Technology is 2.14 times more volatile than Ihuman Inc. It trades about 0.11 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.39 per unit of risk. If you would invest 86.00 in Senmiao Technology on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Senmiao Technology or generate 8.14% 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. Ihuman Inc
Performance |
| Timeline |
| Senmiao Technology |
| Ihuman Inc |
Senmiao Technology and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Ihuman
The main advantage of trading using opposite Senmiao Technology and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Senmiao Technology vs. SLM Corp | Senmiao Technology vs. Orix Corp Ads | Senmiao Technology vs. FirstCash | Senmiao Technology vs. Medallion Financial Corp |
| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |