Correlation Between Powered Brands and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Powered Brands 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 Powered Brands and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powered Brands and Senmiao Technology, you can compare the effects of market volatilities on Powered Brands 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 Powered Brands with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powered Brands and Senmiao Technology.
Diversification Opportunities for Powered Brands and Senmiao Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Powered and Senmiao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Powered Brands and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Powered Brands 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 Powered Brands 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 Powered Brands i.e., Powered Brands and Senmiao Technology go up and down completely randomly.
Pair Corralation between Powered Brands and Senmiao Technology
If you would invest (100.00) in Powered Brands on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Powered Brands or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Powered Brands vs. Senmiao Technology
Performance |
| Timeline |
| Powered Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Senmiao Technology |
Powered Brands and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powered Brands and Senmiao Technology
The main advantage of trading using opposite Powered Brands and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powered Brands 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.| Powered Brands vs. Delek Drilling | Powered Brands vs. Seadrill Limited | Powered Brands vs. Mayfair Gold Corp | Powered Brands vs. AKITA Drilling |
| Senmiao Technology vs. Visa Class A | Senmiao Technology vs. PayPal Holdings | Senmiao Technology vs. Upstart Holdings | Senmiao Technology vs. Mastercard |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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