Correlation Between Senmiao Technology and Nations VolDex
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Nations VolDex 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 Nations VolDex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Nations VolDex, you can compare the effects of market volatilities on Senmiao Technology and Nations VolDex 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 Nations VolDex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Nations VolDex.
Diversification Opportunities for Senmiao Technology and Nations VolDex
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Senmiao and Nations is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Nations VolDex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations VolDex 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 Nations VolDex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations VolDex has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Nations VolDex go up and down completely randomly.
Pair Corralation between Senmiao Technology and Nations VolDex
Given the investment horizon of 90 days Senmiao Technology is expected to generate 0.78 times more return on investment than Nations VolDex. However, Senmiao Technology is 1.28 times less risky than Nations VolDex. It trades about -0.09 of its potential returns per unit of risk. Nations VolDex is currently generating about -0.13 per unit of risk. If you would invest 97.00 in Senmiao Technology on September 12, 2024 and sell it today you would lose (8.90) from holding Senmiao Technology or give up 9.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Nations VolDex
Performance |
| Timeline |
Senmiao Technology and Nations VolDex Volatility Contrast
Predicted Return Density |
| Returns |
Senmiao Technology
Pair trading matchups for Senmiao Technology
Nations VolDex
Pair trading matchups for Nations VolDex
Pair Trading with Senmiao Technology and Nations VolDex
The main advantage of trading using opposite Senmiao Technology and Nations VolDex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Nations VolDex 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 Nations VolDex will offset losses from the drop in Nations VolDex's long position.| Senmiao Technology vs. Victory Integrity Smallmid Cap | Senmiao Technology vs. Hilton Worldwide Holdings | Senmiao Technology vs. NVIDIA | Senmiao Technology vs. JPMorgan Chase Co |
| Nations VolDex vs. Highway Holdings Limited | Nations VolDex vs. Brenmiller Energy Ltd | Nations VolDex vs. Summit Materials | Nations VolDex vs. Stepan Company |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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