Correlation Between Atlanticus Holdings and Sentage Holdings
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and Sentage Holdings 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 Atlanticus Holdings and Sentage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings and Sentage Holdings, you can compare the effects of market volatilities on Atlanticus Holdings and Sentage Holdings 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 Atlanticus Holdings with a short position of Sentage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Sentage Holdings.
Diversification Opportunities for Atlanticus Holdings and Sentage Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlanticus and Sentage is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings and Sentage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentage Holdings and Atlanticus 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 Atlanticus Holdings are associated (or correlated) with Sentage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentage Holdings has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and Sentage Holdings go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and Sentage Holdings
Given the investment horizon of 90 days Atlanticus Holdings is expected to generate 1.22 times more return on investment than Sentage Holdings. However, Atlanticus Holdings is 1.22 times more volatile than Sentage Holdings. It trades about 0.72 of its potential returns per unit of risk. Sentage Holdings is currently generating about -0.32 per unit of risk. If you would invest 3,719 in Atlanticus Holdings on August 28, 2024 and sell it today you would earn a total of 1,982 from holding Atlanticus Holdings or generate 53.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlanticus Holdings vs. Sentage Holdings
Performance |
| Timeline |
| Atlanticus Holdings |
| Sentage Holdings |
Atlanticus Holdings and Sentage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanticus Holdings and Sentage Holdings
The main advantage of trading using opposite Atlanticus Holdings and Sentage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings position performs unexpectedly, Sentage Holdings 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 Sentage Holdings will offset losses from the drop in Sentage Holdings' long position.| Atlanticus Holdings vs. 360 Finance | Atlanticus Holdings vs. Lexinfintech Holdings | Atlanticus Holdings vs. Qudian Inc | Atlanticus Holdings vs. Enova International |
| Sentage Holdings vs. Yirendai | Sentage Holdings vs. Lexinfintech Holdings | Sentage Holdings vs. Lufax Holding | Sentage Holdings vs. X Financial Class |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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