Correlation Between VanEck Vectors and Senstar Technologies
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors 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 VanEck Vectors and Senstar Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vectors Moodys and Senstar Technologies, you can compare the effects of market volatilities on VanEck Vectors 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 VanEck Vectors with a short position of Senstar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and Senstar Technologies.
Diversification Opportunities for VanEck Vectors and Senstar Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and Senstar is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors Moodys and Senstar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senstar Technologies and VanEck Vectors 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 VanEck Vectors Moodys 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 VanEck Vectors i.e., VanEck Vectors and Senstar Technologies go up and down completely randomly.
Pair Corralation between VanEck Vectors and Senstar Technologies
Considering the 90-day investment horizon VanEck Vectors is expected to generate 108.23 times less return on investment than Senstar Technologies. But when comparing it to its historical volatility, VanEck Vectors Moodys is 20.39 times less risky than Senstar Technologies. It trades about 0.09 of its potential returns per unit of risk. Senstar Technologies is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 146.00 in Senstar Technologies on August 29, 2024 and sell it today you would earn a total of 152.00 from holding Senstar Technologies or generate 104.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vectors Moodys vs. Senstar Technologies
Performance |
| Timeline |
| VanEck Vectors Moodys |
| Senstar Technologies |
VanEck Vectors and Senstar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and Senstar Technologies
The main advantage of trading using opposite VanEck Vectors and Senstar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors 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.| VanEck Vectors vs. Senstar Technologies | VanEck Vectors vs. ImmuCell | VanEck Vectors vs. Anika Therapeutics | VanEck Vectors 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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