Correlation Between NYSE Composite and Senseonics Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Senseonics Holdings 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 NYSE Composite and Senseonics Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Senseonics Holdings, you can compare the effects of market volatilities on NYSE Composite and Senseonics Holdings 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 NYSE Composite with a short position of Senseonics Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Senseonics Holdings.
Diversification Opportunities for NYSE Composite and Senseonics Holdings
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Senseonics is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Senseonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senseonics Holdings and NYSE Composite 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 NYSE Composite are associated (or correlated) with Senseonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senseonics Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and Senseonics Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Senseonics Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.15 times more return on investment than Senseonics Holdings. However, NYSE Composite is 6.87 times less risky than Senseonics Holdings. It trades about 0.09 of its potential returns per unit of risk. Senseonics Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,548,776 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 448,054 from holding NYSE Composite or generate 28.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Senseonics Holdings
Performance |
| Timeline |
NYSE Composite and Senseonics Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Senseonics Holdings
Pair trading matchups for Senseonics Holdings
Pair Trading with NYSE Composite and Senseonics Holdings
The main advantage of trading using opposite NYSE Composite and Senseonics Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Senseonics Holdings 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 Senseonics Holdings will offset losses from the drop in Senseonics Holdings' long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Senseonics Holdings vs. Insulet | Senseonics Holdings vs. Tandem Diabetes Care | Senseonics Holdings vs. Abbott Laboratories | Senseonics Holdings vs. Align Technology |
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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