Correlation Between SPDR Barclays and Senstar Technologies
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Senstar Technologies 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 SPDR Barclays and Senstar Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Intermediate and Senstar Technologies, you can compare the effects of market volatilities on SPDR Barclays and Senstar Technologies 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 SPDR Barclays with a short position of Senstar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Senstar Technologies.
Diversification Opportunities for SPDR Barclays and Senstar Technologies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and Senstar is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and Senstar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senstar Technologies and SPDR Barclays 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 SPDR Barclays Intermediate are associated (or correlated) with Senstar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senstar Technologies has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Senstar Technologies go up and down completely randomly.
Pair Corralation between SPDR Barclays and Senstar Technologies
Given the investment horizon of 90 days SPDR Barclays is expected to generate 13.34 times less return on investment than Senstar Technologies. But when comparing it to its historical volatility, SPDR Barclays Intermediate is 14.49 times less risky than Senstar Technologies. It trades about 0.07 of its potential returns per unit of risk. Senstar Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Senstar Technologies on August 24, 2024 and sell it today you would earn a total of 163.00 from holding Senstar Technologies or generate 119.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. Senstar Technologies
Performance |
| Timeline |
| SPDR Barclays Interm |
| Senstar Technologies |
SPDR Barclays and Senstar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Senstar Technologies
The main advantage of trading using opposite SPDR Barclays and Senstar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Senstar Technologies 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 Senstar Technologies will offset losses from the drop in Senstar Technologies' long position.| SPDR Barclays vs. Senstar Technologies | SPDR Barclays vs. ImmuCell | SPDR Barclays vs. Anika Therapeutics | SPDR Barclays vs. Aquagold International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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