Correlation Between WPLAU and Senmiao Technology
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By analyzing existing cross correlation between WPLAU 37 15 SEP 26 and Senmiao Technology, you can compare the effects of market volatilities on WPLAU 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 WPLAU with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of WPLAU and Senmiao Technology.
Diversification Opportunities for WPLAU and Senmiao Technology
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WPLAU and Senmiao is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding WPLAU 37 15 SEP 26 and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and WPLAU 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 WPLAU 37 15 SEP 26 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 WPLAU i.e., WPLAU and Senmiao Technology go up and down completely randomly.
Pair Corralation between WPLAU and Senmiao Technology
Assuming the 90 days trading horizon WPLAU is expected to generate 4.11 times less return on investment than Senmiao Technology. But when comparing it to its historical volatility, WPLAU 37 15 SEP 26 is 13.69 times less risky than Senmiao Technology. It trades about 0.09 of its potential returns per unit of risk. Senmiao Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Senmiao Technology on September 13, 2024 and sell it today you would lose (4.50) from holding Senmiao Technology or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 23.64% |
| Values | Daily Returns |
WPLAU 37 15 SEP 26 vs. Senmiao Technology
Performance |
| Timeline |
| WPLAU 37 15 |
| Senmiao Technology |
WPLAU and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WPLAU and Senmiao Technology
The main advantage of trading using opposite WPLAU and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WPLAU 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.| WPLAU vs. Yuexiu Transport Infrastructure | WPLAU vs. PennantPark Investment | WPLAU vs. Forsys Metals Corp | WPLAU vs. SL Green Realty |
| Senmiao Technology vs. Visa Class A | Senmiao Technology vs. PayPal Holdings | Senmiao Technology vs. Upstart Holdings | Senmiao Technology vs. Mastercard |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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