Correlation Between Senmiao Technology and Park National
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Park National 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 Park National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Park National, you can compare the effects of market volatilities on Senmiao Technology and Park National 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 Park National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Park National.
Diversification Opportunities for Senmiao Technology and Park National
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Senmiao and Park is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Park National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park National 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 Park National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park National has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Park National go up and down completely randomly.
Pair Corralation between Senmiao Technology and Park National
Given the investment horizon of 90 days Senmiao Technology is expected to under-perform the Park National. In addition to that, Senmiao Technology is 1.87 times more volatile than Park National. It trades about -0.15 of its total potential returns per unit of risk. Park National is currently generating about 0.05 per unit of volatility. If you would invest 17,072 in Park National on November 9, 2024 and sell it today you would earn a total of 225.00 from holding Park National or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Park National
Performance |
| Timeline |
| Senmiao Technology |
| Park National |
Senmiao Technology and Park National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Park National
The main advantage of trading using opposite Senmiao Technology and Park National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Park National 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 Park National will offset losses from the drop in Park National's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Park National vs. Peoples Bancorp | Park National vs. Lakeland Financial | Park National vs. NBT Bancorp | Park National vs. Trustmark |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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