Correlation Between Senmiao Technology and LOWES
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By analyzing existing cross correlation between Senmiao Technology and LOWES PANIES INC, you can compare the effects of market volatilities on Senmiao Technology and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and LOWES.
Diversification Opportunities for Senmiao Technology and LOWES
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Senmiao and LOWES is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and LOWES go up and down completely randomly.
Pair Corralation between Senmiao Technology and LOWES
Given the investment horizon of 90 days Senmiao Technology is expected to generate 8.06 times more return on investment than LOWES. However, Senmiao Technology is 8.06 times more volatile than LOWES PANIES INC. It trades about 0.03 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about 0.01 per unit of risk. If you would invest 92.00 in Senmiao Technology on September 13, 2024 and sell it today you would lose (4.50) from holding Senmiao Technology or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Senmiao Technology vs. LOWES PANIES INC
Performance |
| Timeline |
| Senmiao Technology |
| LOWES PANIES INC |
Senmiao Technology and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and LOWES
The main advantage of trading using opposite Senmiao Technology and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Senmiao Technology vs. Visa Class A | Senmiao Technology vs. PayPal Holdings | Senmiao Technology vs. Upstart Holdings | Senmiao Technology vs. Mastercard |
| LOWES vs. National CineMedia | LOWES vs. Hf Foods Group | LOWES vs. Senmiao Technology | LOWES vs. NH Foods Ltd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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