Correlation Between International Money and SenSen Networks
Can any of the company-specific risk be diversified away by investing in both International Money and SenSen Networks 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 International Money and SenSen Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Money Express and SenSen Networks Limited, you can compare the effects of market volatilities on International Money and SenSen Networks 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 International Money with a short position of SenSen Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Money and SenSen Networks.
Diversification Opportunities for International Money and SenSen Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and SenSen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express and SenSen Networks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenSen Networks and International Money 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 International Money Express are associated (or correlated) with SenSen Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SenSen Networks has no effect on the direction of International Money i.e., International Money and SenSen Networks go up and down completely randomly.
Pair Corralation between International Money and SenSen Networks
Given the investment horizon of 90 days International Money is expected to generate 10.42 times less return on investment than SenSen Networks. But when comparing it to its historical volatility, International Money Express is 3.55 times less risky than SenSen Networks. It trades about 0.01 of its potential returns per unit of risk. SenSen Networks Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4.50 in SenSen Networks Limited on September 3, 2024 and sell it today you would lose (0.60) from holding SenSen Networks Limited or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
International Money Express vs. SenSen Networks Limited
Performance |
| Timeline |
| International Money |
| SenSen Networks |
International Money and SenSen Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Money and SenSen Networks
The main advantage of trading using opposite International Money and SenSen Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Money position performs unexpectedly, SenSen Networks 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 SenSen Networks will offset losses from the drop in SenSen Networks' long position.| International Money vs. NetScout Systems | International Money vs. Consensus Cloud Solutions | International Money vs. CSG Systems International | International Money vs. EverCommerce |
| SenSen Networks vs. CSG Systems International | SenSen Networks vs. Global Blue Group | SenSen Networks vs. International Money Express | SenSen Networks vs. Consensus Cloud Solutions |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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