Correlation Between PacificHealth Laboratories and Senstar Technologies

Can any of the company-specific risk be diversified away by investing in both PacificHealth Laboratories and Senstar Technologies 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 PacificHealth Laboratories and Senstar Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PacificHealth Laboratories and Senstar Technologies, you can compare the effects of market volatilities on PacificHealth Laboratories and Senstar Technologies 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 PacificHealth Laboratories with a short position of Senstar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PacificHealth Laboratories and Senstar Technologies.

Diversification Opportunities for PacificHealth Laboratories and Senstar Technologies

0.0

Correlation Coefficient

PacificHealth Laboratories  Senstar Technologies

Pay attention - limited upside

The 3 months correlation between PacificHealth and Senstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PacificHealth Laboratories and Senstar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senstar Technologies and PacificHealth Laboratories 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 PacificHealth Laboratories are associated (or correlated) with Senstar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senstar Technologies has no effect on the direction of PacificHealth Laboratories i.e., PacificHealth Laboratories and Senstar Technologies go up and down completely randomly.

Pair Corralation between PacificHealth Laboratories and Senstar Technologies

If you would invest  167.00  in Senstar Technologies on October 26, 2024 and sell it today you would earn a total of  211.00  from holding Senstar Technologies or generate 126.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.81%
Values	Daily Returns

PacificHealth Laboratories  vs.  Senstar Technologies

PacificHealth Laboratories

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PacificHealth Laboratories has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, PacificHealth Laboratories is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Senstar Technologies

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Senstar Technologies are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Senstar Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PacificHealth Laboratories and Senstar Technologies

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

The idea behind PacificHealth Laboratories and Senstar Technologies 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.