Correlation Between FitLife Brands, and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, 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 FitLife Brands, and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FitLife Brands, Common and Senmiao Technology, you can compare the effects of market volatilities on FitLife Brands, 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 FitLife Brands, with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Senmiao Technology.
Diversification Opportunities for FitLife Brands, and Senmiao Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FitLife and Senmiao is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and FitLife Brands, 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 FitLife Brands, Common 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 FitLife Brands, i.e., FitLife Brands, and Senmiao Technology go up and down completely randomly.
Pair Corralation between FitLife Brands, and Senmiao Technology
Given the investment horizon of 90 days FitLife Brands, is expected to generate 2.07 times less return on investment than Senmiao Technology. But when comparing it to its historical volatility, FitLife Brands, Common is 2.08 times less risky than Senmiao Technology. It trades about 0.08 of its potential returns per unit of risk. Senmiao Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Senmiao Technology on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Senmiao Technology or generate 128.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Senmiao Technology
Performance |
| Timeline |
| FitLife Brands, Common |
| Senmiao Technology |
FitLife Brands, and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Senmiao Technology
The main advantage of trading using opposite FitLife Brands, and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, 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.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Senmiao Technology vs. Highway Holdings Limited | Senmiao Technology vs. QCR Holdings | Senmiao Technology vs. Partner Communications | Senmiao Technology vs. Acumen Pharmaceuticals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |