Correlation Between Senmiao Technology and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Solstad Offshore 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 Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Solstad Offshore ASA, you can compare the effects of market volatilities on Senmiao Technology and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Solstad Offshore.
Diversification Opportunities for Senmiao Technology and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Senmiao and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Solstad Offshore go up and down completely randomly.
Pair Corralation between Senmiao Technology and Solstad Offshore
If you would invest 88.00 in Senmiao Technology on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Senmiao Technology or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Senmiao Technology vs. Solstad Offshore ASA
Performance |
| Timeline |
| Senmiao Technology |
| Solstad Offshore ASA |
Senmiao Technology and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Solstad Offshore
The main advantage of trading using opposite Senmiao Technology and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Solstad Offshore vs. Definitive Healthcare Corp | Solstad Offshore vs. Genfit | Solstad Offshore vs. Teleflex Incorporated | Solstad Offshore vs. SLR Investment Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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