Correlation Between II-VI Incorporated and Sensata Technologies
Can any of the company-specific risk be diversified away by investing in both II-VI Incorporated and Sensata Technologies 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 II-VI Incorporated and Sensata Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between II VI Incorporated and Sensata Technologies Holding, you can compare the effects of market volatilities on II-VI Incorporated and Sensata Technologies 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 II-VI Incorporated with a short position of Sensata Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of II-VI Incorporated and Sensata Technologies.
Diversification Opportunities for II-VI Incorporated and Sensata Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between II-VI and Sensata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding II VI Incorporated and Sensata Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensata Technologies and II-VI Incorporated 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 II VI Incorporated are associated (or correlated) with Sensata Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensata Technologies has no effect on the direction of II-VI Incorporated i.e., II-VI Incorporated and Sensata Technologies go up and down completely randomly.
Pair Corralation between II-VI Incorporated and Sensata Technologies
If you would invest 3,221 in II VI Incorporated on August 27, 2024 and sell it today you would earn a total of 0.00 from holding II VI Incorporated or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
II VI Incorporated vs. Sensata Technologies Holding
Performance |
| Timeline |
| II-VI Incorporated |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sensata Technologies |
II-VI Incorporated and Sensata Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with II-VI Incorporated and Sensata Technologies
The main advantage of trading using opposite II-VI Incorporated and Sensata Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if II-VI Incorporated position performs unexpectedly, Sensata Technologies 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 Sensata Technologies will offset losses from the drop in Sensata Technologies' long position.| II-VI Incorporated vs. BioNTech SE | II-VI Incorporated vs. Sweetgreen | II-VI Incorporated vs. Amgen Inc | II-VI Incorporated vs. Viemed Healthcare |
| Sensata Technologies vs. Cepton Inc | Sensata Technologies vs. SaverOne 2014 Ltd | Sensata Technologies vs. Kraken Robotics | Sensata Technologies vs. Focus Universal |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |