Correlation Between Senmiao Technology and NH Foods
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and NH Foods 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 NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and NH Foods Ltd, you can compare the effects of market volatilities on Senmiao Technology and NH Foods 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 NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and NH Foods.
Diversification Opportunities for Senmiao Technology and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Senmiao and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods 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 NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and NH Foods go up and down completely randomly.
Pair Corralation between Senmiao Technology and NH Foods
Given the investment horizon of 90 days Senmiao Technology is expected to generate 7.88 times more return on investment than NH Foods. However, Senmiao Technology is 7.88 times more volatile than NH Foods Ltd. It trades about 0.03 of its potential returns per unit of risk. NH Foods Ltd is currently generating about 0.1 per unit of risk. If you would invest 94.00 in Senmiao Technology on August 29, 2024 and sell it today you would lose (4.55) from holding Senmiao Technology or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. NH Foods Ltd
Performance |
| Timeline |
| Senmiao Technology |
| NH Foods |
Senmiao Technology and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and NH Foods
The main advantage of trading using opposite Senmiao Technology and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| NH Foods vs. Darling Ingredients | NH Foods vs. Paranovus Entertainment Technology | NH Foods vs. ABIVAX Socit Anonyme | NH Foods vs. Pinnacle Sherman Multi Strategy |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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