Correlation Between Senmiao Technology and DT Cloud

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

By analyzing existing cross correlation between Senmiao Technology and DT Cloud Acquisition, you can compare the effects of market volatilities on Senmiao Technology and DT Cloud 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 DT Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and DT Cloud.

Diversification Opportunities for Senmiao Technology and DT Cloud

-0.1

Correlation Coefficient

Senmiao Technology  DT Cloud

Good diversification

The 3 months correlation between Senmiao and DYCQ is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and DT Cloud Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DT Cloud Acquisition 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 DT Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DT Cloud Acquisition has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and DT Cloud go up and down completely randomly.

Pair Corralation between Senmiao Technology and DT Cloud

Given the investment horizon of 90 days Senmiao Technology is expected to generate 3.03 times more return on investment than DT Cloud. However, Senmiao Technology is 3.03 times more volatile than DT Cloud Acquisition. It trades about 0.02 of its potential returns per unit of risk. DT Cloud Acquisition is currently generating about -0.22 per unit of risk. If you would invest  133.00  in Senmiao Technology on September 9, 2025 and sell it today you would lose (3.00) from holding Senmiao Technology or give up 2.26% of portfolio value over 90 days.

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

Senmiao Technology  vs.  DT Cloud Acquisition

Senmiao Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Senmiao Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

DT Cloud Acquisition

Risk-Adjusted Performance

Weakest

Over the last 90 days DT Cloud Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, DT Cloud is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Senmiao Technology and DT Cloud

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

The idea behind Senmiao Technology and DT Cloud Acquisition 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..