Correlation Between Imax Corp and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Imax Corp 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 Imax Corp and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Senmiao Technology, you can compare the effects of market volatilities on Imax Corp 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 Imax Corp with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Senmiao Technology.
Diversification Opportunities for Imax Corp and Senmiao Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Imax and Senmiao is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Imax Corp 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 Imax Corp 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 Imax Corp i.e., Imax Corp and Senmiao Technology go up and down completely randomly.
Pair Corralation between Imax Corp and Senmiao Technology
Given the investment horizon of 90 days Imax Corp is expected to generate 0.64 times more return on investment than Senmiao Technology. However, Imax Corp is 1.57 times less risky than Senmiao Technology. It trades about 0.12 of its potential returns per unit of risk. Senmiao Technology is currently generating about 0.02 per unit of risk. If you would invest 2,055 in Imax Corp on October 26, 2024 and sell it today you would earn a total of 321.00 from holding Imax Corp or generate 15.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imax Corp vs. Senmiao Technology
Performance |
| Timeline |
| Imax Corp |
| Senmiao Technology |
Imax Corp and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and Senmiao Technology
The main advantage of trading using opposite Imax Corp and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp 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.| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
| Senmiao Technology vs. Visa Class A | Senmiao Technology vs. PayPal Holdings | Senmiao Technology vs. Capital One Financial | Senmiao Technology vs. Upstart Holdings |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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