Correlation Between Senmiao Technology and International Media
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and International Media 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 International Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and International Media Acquisition, you can compare the effects of market volatilities on Senmiao Technology and International Media 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 International Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and International Media.
Diversification Opportunities for Senmiao Technology and International Media
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Senmiao and International is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and International Media Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Media 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 International Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Media has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and International Media go up and down completely randomly.
Pair Corralation between Senmiao Technology and International Media
If you would invest 1,200 in International Media Acquisition on September 4, 2024 and sell it today you would earn a total of 0.00 from holding International Media Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Senmiao Technology vs. International Media Acquisitio
Performance |
| Timeline |
| Senmiao Technology |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Senmiao Technology and International Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and International Media
The main advantage of trading using opposite Senmiao Technology and International Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, International Media 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 International Media will offset losses from the drop in International Media's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| International Media vs. Weyco Group | International Media vs. Snap On | International Media vs. Newell Brands | International Media vs. Vera Bradley |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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