Correlation Between Senstar Technologies and VanEck Vectors

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Senstar Technologies and VanEck Vectors 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 VanEck Vectors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senstar Technologies and VanEck Vectors Moodys, you can compare the effects of market volatilities on Senstar Technologies and VanEck Vectors 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 VanEck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senstar Technologies and VanEck Vectors.

Diversification Opportunities for Senstar Technologies and VanEck Vectors

-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Senstar and VanEck is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Senstar Technologies and VanEck Vectors Moodys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vectors Moodys 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 VanEck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vectors Moodys has no effect on the direction of Senstar Technologies i.e., Senstar Technologies and VanEck Vectors go up and down completely randomly.

Pair Corralation between Senstar Technologies and VanEck Vectors

Considering the 90-day investment horizon Senstar Technologies is expected to generate 10.39 times more return on investment than VanEck Vectors. However, Senstar Technologies is 10.39 times more volatile than VanEck Vectors Moodys. It trades about 0.06 of its potential returns per unit of risk. VanEck Vectors Moodys is currently generating about 0.07 per unit of risk. If you would invest  149.00  in Senstar Technologies on August 29, 2024 and sell it today you would earn a total of  149.00  from holding Senstar Technologies or generate 100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Senstar Technologies  vs.  VanEck Vectors Moodys

 Performance 
       Timeline  
Senstar Technologies 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Senstar Technologies are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Senstar Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.
VanEck Vectors Moodys 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days VanEck Vectors Moodys has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, VanEck Vectors is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Senstar Technologies and VanEck Vectors Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Senstar Technologies and VanEck Vectors

The main advantage of trading using opposite Senstar Technologies and VanEck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senstar Technologies position performs unexpectedly, VanEck Vectors 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 VanEck Vectors will offset losses from the drop in VanEck Vectors' long position.
The idea behind Senstar Technologies and VanEck Vectors Moodys pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Global Correlations
Find global opportunities by holding instruments from different markets