Correlation Between Senmiao Technology and 03027XBM1

Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and 03027XBM1 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 03027XBM1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Senmiao Technology and AMT 27 15 APR 31, you can compare the effects of market volatilities on Senmiao Technology and 03027XBM1 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 03027XBM1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and 03027XBM1.

Diversification Opportunities for Senmiao Technology and 03027XBM1

-0.31

Correlation Coefficient

Senmiao Technology  03027XBM1

Very good diversification

The 3 months correlation between Senmiao and 03027XBM1 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and AMT 27 15 APR 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMT 27 15 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 03027XBM1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMT 27 15 has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and 03027XBM1 go up and down completely randomly.

Pair Corralation between Senmiao Technology and 03027XBM1

Given the investment horizon of 90 days Senmiao Technology is expected to generate 10.38 times more return on investment than 03027XBM1. However, Senmiao Technology is 10.38 times more volatile than AMT 27 15 APR 31. It trades about 0.03 of its potential returns per unit of risk. AMT 27 15 APR 31 is currently generating about -0.01 per unit of risk. If you would invest  92.00  in Senmiao Technology on October 11, 2024 and sell it today you would earn a total of  5.00  from holding Senmiao Technology or generate 5.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.36%
Values	Daily Returns

Senmiao Technology  vs.  AMT 27 15 APR 31

Senmiao Technology

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Senmiao Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Senmiao Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

AMT 27 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMT 27 15 APR 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for AMT 27 15 APR 31 investors.

Pair Trading with Senmiao Technology and 03027XBM1

The main advantage of trading using opposite Senmiao Technology and 03027XBM1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, 03027XBM1 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 03027XBM1 will offset losses from the drop in 03027XBM1's long position.

The idea behind Senmiao Technology and AMT 27 15 APR 31 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.