Correlation Between Senmiao Technology and OZ Minerals
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and OZ Minerals 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 OZ Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and OZ Minerals Limited, you can compare the effects of market volatilities on Senmiao Technology and OZ Minerals 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 OZ Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and OZ Minerals.
Diversification Opportunities for Senmiao Technology and OZ Minerals
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Senmiao and OZMLF is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and OZ Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OZ Minerals Limited 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 OZ Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OZ Minerals Limited has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and OZ Minerals go up and down completely randomly.
Pair Corralation between Senmiao Technology and OZ Minerals
If you would invest 1,900 in OZ Minerals Limited on September 5, 2024 and sell it today you would earn a total of 0.00 from holding OZ Minerals Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Senmiao Technology vs. OZ Minerals Limited
Performance |
| Timeline |
| Senmiao Technology |
| OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Senmiao Technology and OZ Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and OZ Minerals
The main advantage of trading using opposite Senmiao Technology and OZ Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, OZ Minerals 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 OZ Minerals will offset losses from the drop in OZ Minerals' long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| OZ Minerals vs. Freedom Internet Group | OZ Minerals vs. Kaltura | OZ Minerals vs. Senmiao Technology | OZ Minerals vs. Amkor Technology |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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