Correlation Between U Haul and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both U Haul 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 U Haul and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and Senmiao Technology, you can compare the effects of market volatilities on U Haul 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 U Haul with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Senmiao Technology.
Diversification Opportunities for U Haul and Senmiao Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UHAL and Senmiao is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and U Haul 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 U Haul Holding 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 U Haul i.e., U Haul and Senmiao Technology go up and down completely randomly.
Pair Corralation between U Haul and Senmiao Technology
Given the investment horizon of 90 days U Haul Holding is expected to under-perform the Senmiao Technology. But the stock apears to be less risky and, when comparing its historical volatility, U Haul Holding is 2.55 times less risky than Senmiao Technology. The stock trades about -0.1 of its potential returns per unit of risk. The Senmiao Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 89.00 in Senmiao Technology on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Senmiao Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. Senmiao Technology
Performance |
| Timeline |
| U Haul Holding |
| Senmiao Technology |
U Haul and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Senmiao Technology
The main advantage of trading using opposite U Haul and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul 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.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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