Correlation Between Monument Circle and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Monument Circle 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 Monument Circle and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monument Circle Acquisition and Senmiao Technology, you can compare the effects of market volatilities on Monument Circle 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 Monument Circle with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monument Circle and Senmiao Technology.
Diversification Opportunities for Monument Circle and Senmiao Technology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Monument and Senmiao is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Monument Circle Acquisition and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Monument Circle 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 Monument Circle Acquisition 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 Monument Circle i.e., Monument Circle and Senmiao Technology go up and down completely randomly.
Pair Corralation between Monument Circle and Senmiao Technology
If you would invest 85.00 in Senmiao Technology on August 30, 2024 and sell it today you would earn a total of 4.45 from holding Senmiao Technology or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Monument Circle Acquisition vs. Senmiao Technology
Performance |
| Timeline |
| Monument Circle Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Senmiao Technology |
Monument Circle and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monument Circle and Senmiao Technology
The main advantage of trading using opposite Monument Circle and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monument Circle 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.| Monument Circle vs. Senmiao Technology | Monument Circle vs. Nextplat Corp | Monument Circle vs. Kaltura | Monument Circle vs. Weibo Corp |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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