Correlation Between Senmiao Technology and Nisun International

Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Nisun International 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 Senmiao Technology and Nisun International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Senmiao Technology and Nisun International Enterprise, you can compare the effects of market volatilities on Senmiao Technology and Nisun International 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 Senmiao Technology with a short position of Nisun International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Nisun International.

Diversification Opportunities for Senmiao Technology and Nisun International

-0.13

Correlation Coefficient

Senmiao Technology  Nisun International

Good diversification

The 3 months correlation between Senmiao and Nisun is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Nisun International Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisun International and Senmiao Technology 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 Senmiao Technology are associated (or correlated) with Nisun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisun International has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Nisun International go up and down completely randomly.

Pair Corralation between Senmiao Technology and Nisun International

Given the investment horizon of 90 days Senmiao Technology is expected to generate 2.18 times less return on investment than Nisun International. But when comparing it to its historical volatility, Senmiao Technology is 1.35 times less risky than Nisun International. It trades about 0.03 of its potential returns per unit of risk. Nisun International Enterprise is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  715.00  in Nisun International Enterprise on December 29, 2024 and sell it today you would earn a total of  45.00  from holding Nisun International Enterprise or generate 6.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Senmiao Technology  vs.  Nisun International Enterprise

Senmiao Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Senmiao Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical indicators, Senmiao Technology may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Nisun International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nisun International Enterprise are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Nisun International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Senmiao Technology and Nisun International

The main advantage of trading using opposite Senmiao Technology and Nisun International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Nisun International 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 Nisun International will offset losses from the drop in Nisun International's long position.

The idea behind Senmiao Technology and Nisun International Enterprise pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.