Correlation Between Xtant Medical and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Xtant Medical and Senmiao Technology 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 Xtant Medical and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtant Medical Holdings and Senmiao Technology, you can compare the effects of market volatilities on Xtant Medical and Senmiao Technology 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 Xtant Medical with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and Senmiao Technology.
Diversification Opportunities for Xtant Medical and Senmiao Technology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtant and Senmiao is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Xtant Medical 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 Xtant Medical Holdings are associated (or correlated) with Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of Xtant Medical i.e., Xtant Medical and Senmiao Technology go up and down completely randomly.
Pair Corralation between Xtant Medical and Senmiao Technology
Given the investment horizon of 90 days Xtant Medical Holdings is expected to under-perform the Senmiao Technology. But the stock apears to be less risky and, when comparing its historical volatility, Xtant Medical Holdings is 1.23 times less risky than Senmiao Technology. The stock trades about 0.0 of its potential returns per unit of risk. The Senmiao Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Senmiao Technology on September 23, 2024 and sell it today you would lose (1.00) from holding Senmiao Technology or give up 1.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xtant Medical Holdings vs. Senmiao Technology
Performance |
Timeline |
Xtant Medical Holdings |
Senmiao Technology |
Xtant Medical and Senmiao Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtant Medical and Senmiao Technology
The main advantage of trading using opposite Xtant Medical and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical position performs unexpectedly, Senmiao Technology 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 Senmiao Technology will offset losses from the drop in Senmiao Technology's long position.Xtant Medical vs. Cigna Corp | Xtant Medical vs. Definitive Healthcare Corp | Xtant Medical vs. Guardant Health | Xtant Medical vs. Laboratory of |
Senmiao Technology vs. Visa Class A | Senmiao Technology vs. Mastercard | Senmiao Technology vs. Ally Financial | Senmiao Technology vs. Discover Financial Services |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |