Correlation Between Senmiao Technology and Trust Stamp

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

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

Diversification Opportunities for Senmiao Technology and Trust Stamp

-0.62

Correlation Coefficient

Senmiao Technology  Trust Stamp

Excellent diversification

The 3 months correlation between Senmiao and Trust is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Trust Stamp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Stamp 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 Trust Stamp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Stamp has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Trust Stamp go up and down completely randomly.

Pair Corralation between Senmiao Technology and Trust Stamp

Given the investment horizon of 90 days Senmiao Technology is expected to under-perform the Trust Stamp. In addition to that, Senmiao Technology is 1.67 times more volatile than Trust Stamp. It trades about -0.07 of its total potential returns per unit of risk. Trust Stamp is currently generating about 0.12 per unit of volatility. If you would invest  199.00  in Trust Stamp on April 24, 2025 and sell it today you would earn a total of  88.00  from holding Trust Stamp or generate 44.22% return on investment over 90 days.

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

Senmiao Technology  vs.  Trust Stamp

Senmiao Technology

Risk-Adjusted Performance

Very Weak

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 August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Trust Stamp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trust Stamp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Trust Stamp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Senmiao Technology and Trust Stamp

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

The idea behind Senmiao Technology and Trust Stamp 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 Stocks Directory module to find actively traded stocks across global markets.