Correlation Between Senstar Technologies and IShares IBoxx
Can any of the company-specific risk be diversified away by investing in both Senstar Technologies and IShares IBoxx 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 Senstar Technologies and IShares IBoxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senstar Technologies and iShares iBoxx Investment, you can compare the effects of market volatilities on Senstar Technologies and IShares IBoxx 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 Senstar Technologies with a short position of IShares IBoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senstar Technologies and IShares IBoxx.
Diversification Opportunities for Senstar Technologies and IShares IBoxx
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senstar and IShares is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Senstar Technologies and iShares iBoxx Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBoxx Investment and Senstar Technologies 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 Senstar Technologies are associated (or correlated) with IShares IBoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBoxx Investment has no effect on the direction of Senstar Technologies i.e., Senstar Technologies and IShares IBoxx go up and down completely randomly.
Pair Corralation between Senstar Technologies and IShares IBoxx
Considering the 90-day investment horizon Senstar Technologies is expected to generate 13.47 times more return on investment than IShares IBoxx. However, Senstar Technologies is 13.47 times more volatile than iShares iBoxx Investment. It trades about 0.4 of its potential returns per unit of risk. iShares iBoxx Investment is currently generating about 0.07 per unit of risk. If you would invest 150.00 in Senstar Technologies on August 30, 2024 and sell it today you would earn a total of 129.00 from holding Senstar Technologies or generate 86.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senstar Technologies vs. iShares iBoxx Investment
Performance |
| Timeline |
| Senstar Technologies |
| iShares iBoxx Investment |
Senstar Technologies and IShares IBoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senstar Technologies and IShares IBoxx
The main advantage of trading using opposite Senstar Technologies and IShares IBoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senstar Technologies position performs unexpectedly, IShares IBoxx 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 IShares IBoxx will offset losses from the drop in IShares IBoxx's long position.| Senstar Technologies vs. Fabrinet | Senstar Technologies vs. Knowles Cor | Senstar Technologies vs. Ubiquiti Networks | Senstar Technologies vs. AmpliTech Group |
| IShares IBoxx vs. iShares iBoxx High | IShares IBoxx vs. iShares 1 3 Year | IShares IBoxx vs. iShares TIPS Bond | IShares IBoxx vs. iShares 7 10 Year |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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