Correlation Between Senstar Technologies and ImmuCell

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

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

Diversification Opportunities for Senstar Technologies and ImmuCell

0.8

Correlation Coefficient

Senstar Technologies  ImmuCell

Very poor diversification

The 3 months correlation between Senstar and ImmuCell is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Senstar Technologies and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Senstar Technologies 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 Senstar Technologies are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Senstar Technologies i.e., Senstar Technologies and ImmuCell go up and down completely randomly.

Pair Corralation between Senstar Technologies and ImmuCell

Considering the 90-day investment horizon Senstar Technologies is expected to generate 0.89 times more return on investment than ImmuCell. However, Senstar Technologies is 1.12 times less risky than ImmuCell. It trades about 0.22 of its potential returns per unit of risk. ImmuCell is currently generating about 0.08 per unit of risk. If you would invest  278.00  in Senstar Technologies on October 11, 2024 and sell it today you would earn a total of  54.00  from holding Senstar Technologies or generate 19.42% return on investment over 90 days.

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

Senstar Technologies  vs.  ImmuCell

Senstar Technologies

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Senstar Technologies are ranked lower than 20 (%) 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.

ImmuCell

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Senstar Technologies and ImmuCell

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

The idea behind Senstar Technologies and ImmuCell 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.