Correlation Between 90331HPL1 and SENSATA
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By analyzing existing cross correlation between US BANK NATIONAL and SENSATA TECHNOLOGIES INC, you can compare the effects of market volatilities on 90331HPL1 and SENSATA 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 90331HPL1 with a short position of SENSATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and SENSATA.
Diversification Opportunities for 90331HPL1 and SENSATA
Poor diversification
The 3 months correlation between 90331HPL1 and SENSATA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and SENSATA TECHNOLOGIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENSATA TECHNOLOGIES INC and 90331HPL1 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 US BANK NATIONAL are associated (or correlated) with SENSATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENSATA TECHNOLOGIES INC has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and SENSATA go up and down completely randomly.
Pair Corralation between 90331HPL1 and SENSATA
Assuming the 90 days trading horizon US BANK NATIONAL is expected to under-perform the SENSATA. In addition to that, 90331HPL1 is 1.4 times more volatile than SENSATA TECHNOLOGIES INC. It trades about -0.16 of its total potential returns per unit of risk. SENSATA TECHNOLOGIES INC is currently generating about -0.22 per unit of volatility. If you would invest 8,976 in SENSATA TECHNOLOGIES INC on August 28, 2024 and sell it today you would lose (414.00) from holding SENSATA TECHNOLOGIES INC or give up 4.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
US BANK NATIONAL vs. SENSATA TECHNOLOGIES INC
Performance |
| Timeline |
| US BANK NATIONAL |
| SENSATA TECHNOLOGIES INC |
90331HPL1 and SENSATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 90331HPL1 and SENSATA
The main advantage of trading using opposite 90331HPL1 and SENSATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, SENSATA 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 SENSATA will offset losses from the drop in SENSATA's long position.| 90331HPL1 vs. Sapiens International | 90331HPL1 vs. Rackspace Technology | 90331HPL1 vs. ServiceNow | 90331HPL1 vs. Mills Music Trust |
| SENSATA vs. Compania Cervecerias Unidas | SENSATA vs. Scandinavian Tobacco Group | SENSATA vs. Universal | SENSATA vs. Black Hills |
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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