Correlation Between Telix Pharmaceuticals and Sensen Networks

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

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

Diversification Opportunities for Telix Pharmaceuticals and Sensen Networks

-0.73

Correlation Coefficient

Telix Pharmaceuticals  Sensen Networks

Pay attention - limited upside

The 3 months correlation between Telix and Sensen is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Telix Pharmaceuticals and Sensen Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensen Networks and Telix Pharmaceuticals 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 Telix Pharmaceuticals are associated (or correlated) with Sensen Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensen Networks has no effect on the direction of Telix Pharmaceuticals i.e., Telix Pharmaceuticals and Sensen Networks go up and down completely randomly.

Pair Corralation between Telix Pharmaceuticals and Sensen Networks

Assuming the 90 days trading horizon Telix Pharmaceuticals is expected to generate 0.42 times more return on investment than Sensen Networks. However, Telix Pharmaceuticals is 2.38 times less risky than Sensen Networks. It trades about 0.1 of its potential returns per unit of risk. Sensen Networks is currently generating about 0.02 per unit of risk. If you would invest  759.00  in Telix Pharmaceuticals on September 25, 2024 and sell it today you would earn a total of  1,703  from holding Telix Pharmaceuticals or generate 224.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Telix Pharmaceuticals  vs.  Sensen Networks

Telix Pharmaceuticals

Risk-Adjusted Performance

13 of 100

Good

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

Sensen Networks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sensen Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Telix Pharmaceuticals and Sensen Networks

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

The idea behind Telix Pharmaceuticals and Sensen Networks 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.