Correlation Between Senmiao Technology and Logan Ridge
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Logan Ridge 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 Logan Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Logan Ridge Finance, you can compare the effects of market volatilities on Senmiao Technology and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Logan Ridge.
Diversification Opportunities for Senmiao Technology and Logan Ridge
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Senmiao and Logan is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Logan Ridge go up and down completely randomly.
Pair Corralation between Senmiao Technology and Logan Ridge
Given the investment horizon of 90 days Senmiao Technology is expected to generate 5.11 times more return on investment than Logan Ridge. However, Senmiao Technology is 5.11 times more volatile than Logan Ridge Finance. It trades about 0.03 of its potential returns per unit of risk. Logan Ridge Finance is currently generating about 0.05 per unit of risk. If you would invest 92.00 in Senmiao Technology on September 2, 2024 and sell it today you would lose (3.00) from holding Senmiao Technology or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Logan Ridge Finance
Performance |
| Timeline |
| Senmiao Technology |
| Logan Ridge Finance |
Senmiao Technology and Logan Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Logan Ridge
The main advantage of trading using opposite Senmiao Technology and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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