Correlation Between Avricore Health and SenesTech

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

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

Diversification Opportunities for Avricore Health and SenesTech

0.45

Correlation Coefficient

Avricore Health  SenesTech

Very weak diversification

The 3 months correlation between Avricore and SenesTech is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Avricore Health and SenesTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenesTech and Avricore Health 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 Avricore Health are associated (or correlated) with SenesTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SenesTech has no effect on the direction of Avricore Health i.e., Avricore Health and SenesTech go up and down completely randomly.

Pair Corralation between Avricore Health and SenesTech

Assuming the 90 days horizon Avricore Health is expected to generate 4.52 times more return on investment than SenesTech. However, Avricore Health is 4.52 times more volatile than SenesTech. It trades about 0.15 of its potential returns per unit of risk. SenesTech is currently generating about 0.21 per unit of risk. If you would invest  5.00  in Avricore Health on May 6, 2025 and sell it today you would earn a total of  1.81  from holding Avricore Health or generate 36.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Avricore Health  vs.  SenesTech

Avricore Health

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Avricore Health are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Avricore Health reported solid returns over the last few months and may actually be approaching a breakup point.

SenesTech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, SenesTech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Avricore Health and SenesTech

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

The idea behind Avricore Health and SenesTech 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 Transaction History module to view history of all your transactions and understand their impact on performance.