Correlation Between Logan Ridge and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Logan Ridge 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 Logan Ridge and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Senmiao Technology, you can compare the effects of market volatilities on Logan Ridge 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 Logan Ridge with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Senmiao Technology.
Diversification Opportunities for Logan Ridge and Senmiao Technology
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Logan and Senmiao is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Logan Ridge 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 Logan Ridge Finance 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 Logan Ridge i.e., Logan Ridge and Senmiao Technology go up and down completely randomly.
Pair Corralation between Logan Ridge and Senmiao Technology
Given the investment horizon of 90 days Logan Ridge is expected to generate 2.68 times less return on investment than Senmiao Technology. But when comparing it to its historical volatility, Logan Ridge Finance is 5.11 times less risky than Senmiao Technology. It trades about 0.05 of its potential returns per unit of risk. Senmiao Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Senmiao Technology on September 2, 2024 and sell it today you would lose (3.00) from holding Senmiao Technology or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logan Ridge Finance vs. Senmiao Technology
Performance |
| Timeline |
| Logan Ridge Finance |
| Senmiao Technology |
Logan Ridge and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Senmiao Technology
The main advantage of trading using opposite Logan Ridge and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge 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.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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