Correlation Between Northern Lion and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Northern Lion 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 Northern Lion and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Lion Gold and Senmiao Technology, you can compare the effects of market volatilities on Northern Lion 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 Northern Lion with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Lion and Senmiao Technology.
Diversification Opportunities for Northern Lion and Senmiao Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and Senmiao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Lion Gold and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Northern Lion 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 Northern Lion Gold 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 Northern Lion i.e., Northern Lion and Senmiao Technology go up and down completely randomly.
Pair Corralation between Northern Lion and Senmiao Technology
If you would invest 10.00 in Northern Lion Gold on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Northern Lion Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern Lion Gold vs. Senmiao Technology
Performance |
| Timeline |
| Northern Lion Gold |
| Senmiao Technology |
Northern Lion and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Lion and Senmiao Technology
The main advantage of trading using opposite Northern Lion and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Lion 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.| Northern Lion vs. Sun Country Airlines | Northern Lion vs. Mesa Air Group | Northern Lion vs. Saia Inc | Northern Lion vs. Lindblad Expeditions Holdings |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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