Correlation Between IShares Inflation and Senstar Technologies
Can any of the company-specific risk be diversified away by investing in both IShares Inflation and Senstar 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 IShares Inflation and Senstar Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Inflation Hedged and Senstar Technologies, you can compare the effects of market volatilities on IShares Inflation and Senstar 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 IShares Inflation with a short position of Senstar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Inflation and Senstar Technologies.
Diversification Opportunities for IShares Inflation and Senstar Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Senstar is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding iShares Inflation Hedged and Senstar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senstar Technologies and IShares Inflation 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 iShares Inflation Hedged are associated (or correlated) with Senstar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senstar Technologies has no effect on the direction of IShares Inflation i.e., IShares Inflation and Senstar Technologies go up and down completely randomly.
Pair Corralation between IShares Inflation and Senstar Technologies
Given the investment horizon of 90 days IShares Inflation is expected to generate 24.62 times less return on investment than Senstar Technologies. But when comparing it to its historical volatility, iShares Inflation Hedged is 11.77 times less risky than Senstar Technologies. It trades about 0.07 of its potential returns per unit of risk. Senstar Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 113.00 in Senstar Technologies on August 27, 2024 and sell it today you would earn a total of 186.00 from holding Senstar Technologies or generate 164.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Inflation Hedged vs. Senstar Technologies
Performance |
| Timeline |
| iShares Inflation Hedged |
| Senstar Technologies |
IShares Inflation and Senstar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Inflation and Senstar Technologies
The main advantage of trading using opposite IShares Inflation and Senstar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Inflation position performs unexpectedly, Senstar 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 Senstar Technologies will offset losses from the drop in Senstar Technologies' long position.| IShares Inflation vs. Senstar Technologies | IShares Inflation vs. ImmuCell | IShares Inflation vs. Anika Therapeutics | IShares Inflation vs. Aquagold International |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |