Correlation Between Senmiao Technology and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Perseus Mining 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 Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Perseus Mining Limited, you can compare the effects of market volatilities on Senmiao Technology and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Perseus Mining.
Diversification Opportunities for Senmiao Technology and Perseus Mining
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Senmiao and Perseus is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Perseus Mining go up and down completely randomly.
Pair Corralation between Senmiao Technology and Perseus Mining
Given the investment horizon of 90 days Senmiao Technology is expected to generate 1.85 times more return on investment than Perseus Mining. However, Senmiao Technology is 1.85 times more volatile than Perseus Mining Limited. It trades about 0.03 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.03 per unit of risk. If you would invest 94.00 in Senmiao Technology on August 30, 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Senmiao Technology vs. Perseus Mining Limited
Performance |
| Timeline |
| Senmiao Technology |
| Perseus Mining |
Senmiao Technology and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Perseus Mining
The main advantage of trading using opposite Senmiao Technology and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Perseus Mining vs. Vertiv Holdings Co | Perseus Mining vs. Nasdaq Inc | Perseus Mining vs. McDonalds | Perseus Mining vs. Walmart |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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