Correlation Between Senstar Technologies and Via Renewables
Can any of the company-specific risk be diversified away by investing in both Senstar Technologies and Via Renewables 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 Via Renewables into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senstar Technologies and Via Renewables, you can compare the effects of market volatilities on Senstar Technologies and Via Renewables 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 Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senstar Technologies and Via Renewables.
Diversification Opportunities for Senstar Technologies and Via Renewables
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Senstar and Via is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Senstar Technologies and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Senstar Technologies i.e., Senstar Technologies and Via Renewables go up and down completely randomly.
Pair Corralation between Senstar Technologies and Via Renewables
Considering the 90-day investment horizon Senstar Technologies is expected to generate 7.88 times more return on investment than Via Renewables. However, Senstar Technologies is 7.88 times more volatile than Via Renewables. It trades about 0.4 of its potential returns per unit of risk. Via Renewables is currently generating about 0.31 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senstar Technologies vs. Via Renewables
Performance |
| Timeline |
| Senstar Technologies |
| Via Renewables |
Senstar Technologies and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senstar Technologies and Via Renewables
The main advantage of trading using opposite Senstar Technologies and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senstar Technologies position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' long position.| Senstar Technologies vs. Fabrinet | Senstar Technologies vs. Knowles Cor | Senstar Technologies vs. Ubiquiti Networks | Senstar Technologies vs. AmpliTech Group |
| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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