Correlation Between Senmiao Technology and 60 Degrees
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and 60 Degrees 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 60 Degrees into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and 60 Degrees Pharmaceuticals,, you can compare the effects of market volatilities on Senmiao Technology and 60 Degrees 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 60 Degrees. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and 60 Degrees.
Diversification Opportunities for Senmiao Technology and 60 Degrees
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Senmiao and SXTPW is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and 60 Degrees Pharmaceuticals, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 60 Degrees Pharmaceu 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 60 Degrees. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 60 Degrees Pharmaceu has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and 60 Degrees go up and down completely randomly.
Pair Corralation between Senmiao Technology and 60 Degrees
Given the investment horizon of 90 days Senmiao Technology is expected to under-perform the 60 Degrees. But the stock apears to be less risky and, when comparing its historical volatility, Senmiao Technology is 15.62 times less risky than 60 Degrees. The stock trades about 0.0 of its potential returns per unit of risk. The 60 Degrees Pharmaceuticals, is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.52 in 60 Degrees Pharmaceuticals, on September 4, 2024 and sell it today you would lose (0.04) from holding 60 Degrees Pharmaceuticals, or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Senmiao Technology vs. 60 Degrees Pharmaceuticals,
Performance |
| Timeline |
| Senmiao Technology |
| 60 Degrees Pharmaceu |
Senmiao Technology and 60 Degrees Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and 60 Degrees
The main advantage of trading using opposite Senmiao Technology and 60 Degrees positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, 60 Degrees 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 60 Degrees will offset losses from the drop in 60 Degrees' long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| 60 Degrees vs. Maanshan Iron Steel | 60 Degrees vs. Analog Devices | 60 Degrees vs. Kaiser Aluminum | 60 Degrees vs. Grupo Simec SAB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |