Correlation Between ATIF Holdings and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both ATIF Holdings and Senmiao Technology 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 ATIF Holdings and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATIF Holdings and Senmiao Technology, you can compare the effects of market volatilities on ATIF Holdings and Senmiao Technology 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 ATIF Holdings with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATIF Holdings and Senmiao Technology.
Diversification Opportunities for ATIF Holdings and Senmiao Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATIF and Senmiao is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ATIF Holdings and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and ATIF Holdings 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 ATIF Holdings are associated (or correlated) with Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of ATIF Holdings i.e., ATIF Holdings and Senmiao Technology go up and down completely randomly.
Pair Corralation between ATIF Holdings and Senmiao Technology
Given the investment horizon of 90 days ATIF Holdings is expected to under-perform the Senmiao Technology. In addition to that, ATIF Holdings is 2.89 times more volatile than Senmiao Technology. It trades about -0.04 of its total potential returns per unit of risk. Senmiao Technology is currently generating about -0.11 per unit of volatility. If you would invest 118.00 in Senmiao Technology on August 27, 2024 and sell it today you would lose (24.00) from holding Senmiao Technology or give up 20.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATIF Holdings vs. Senmiao Technology
Performance |
| Timeline |
| ATIF Holdings |
| Senmiao Technology |
ATIF Holdings and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATIF Holdings and Senmiao Technology
The main advantage of trading using opposite ATIF Holdings and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATIF Holdings position performs unexpectedly, Senmiao Technology 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 Senmiao Technology will offset losses from the drop in Senmiao Technology's long position.| ATIF Holdings vs. SPENN Technology AS | ATIF Holdings vs. Arcane Crypto AB | ATIF Holdings vs. OFX Group Ltd | ATIF Holdings vs. Blockmate Ventures |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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