Correlation Between Balchem and SenesTech

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

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

Diversification Opportunities for Balchem and SenesTech

-0.8

Correlation Coefficient

Balchem  SenesTech

Pay attention - limited upside

The 3 months correlation between Balchem and SenesTech is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Balchem and SenesTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenesTech and Balchem 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 Balchem 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 Balchem i.e., Balchem and SenesTech go up and down completely randomly.

Pair Corralation between Balchem and SenesTech

Given the investment horizon of 90 days Balchem is expected to under-perform the SenesTech. But the stock apears to be less risky and, when comparing its historical volatility, Balchem is 6.71 times less risky than SenesTech. The stock trades about -0.03 of its potential returns per unit of risk. The SenesTech is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  281.00  in SenesTech on May 16, 2025 and sell it today you would earn a total of  194.00  from holding SenesTech or generate 69.04% return on investment over 90 days.

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

Balchem  vs.  SenesTech

Balchem

Risk-Adjusted Performance

Weakest

Over the last 90 days Balchem has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Balchem is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

SenesTech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 11 (%) 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 Balchem and SenesTech

The main advantage of trading using opposite Balchem and SenesTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balchem 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 Balchem 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 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..