Correlation Between CARRIER and Senmiao Technology
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By analyzing existing cross correlation between CARRIER GLOBAL P and Senmiao Technology, you can compare the effects of market volatilities on CARRIER 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 CARRIER with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARRIER and Senmiao Technology.
Diversification Opportunities for CARRIER and Senmiao Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CARRIER and Senmiao is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CARRIER GLOBAL P and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and CARRIER 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 CARRIER GLOBAL P 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 CARRIER i.e., CARRIER and Senmiao Technology go up and down completely randomly.
Pair Corralation between CARRIER and Senmiao Technology
Assuming the 90 days trading horizon CARRIER is expected to generate 28.99 times less return on investment than Senmiao Technology. But when comparing it to its historical volatility, CARRIER GLOBAL P is 14.28 times less risky than Senmiao Technology. It trades about 0.04 of its potential returns per unit of risk. Senmiao Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Senmiao Technology on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Senmiao Technology or generate 128.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.17% |
| Values | Daily Returns |
CARRIER GLOBAL P vs. Senmiao Technology
Performance |
| Timeline |
| CARRIER GLOBAL P |
| Senmiao Technology |
CARRIER and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARRIER and Senmiao Technology
The main advantage of trading using opposite CARRIER and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARRIER 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.| CARRIER vs. IPG Photonics | CARRIER vs. Everspin Technologies | CARRIER vs. ON Semiconductor | CARRIER vs. Vishay Intertechnology |
| Senmiao Technology vs. Highway Holdings Limited | Senmiao Technology vs. QCR Holdings | Senmiao Technology vs. Partner Communications | Senmiao Technology vs. Acumen Pharmaceuticals |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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