Correlation Between Dyadic International and SenesTech

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

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

Diversification Opportunities for Dyadic International and SenesTech

-0.51

Correlation Coefficient

Dyadic International  SenesTech

Excellent diversification

The 3 months correlation between Dyadic and SenesTech is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dyadic International and SenesTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenesTech and Dyadic International 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 Dyadic International 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 Dyadic International i.e., Dyadic International and SenesTech go up and down completely randomly.

Pair Corralation between Dyadic International and SenesTech

Given the investment horizon of 90 days Dyadic International is expected to under-perform the SenesTech. But the stock apears to be less risky and, when comparing its historical volatility, Dyadic International is 2.02 times less risky than SenesTech. The stock trades about -0.04 of its potential returns per unit of risk. The SenesTech is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  228.00  in SenesTech on April 29, 2025 and sell it today you would earn a total of  337.00  from holding SenesTech or generate 147.81% return on investment over 90 days.

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

Dyadic International  vs.  SenesTech

Dyadic International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dyadic International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

SenesTech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 19 (%) 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 Dyadic International and SenesTech

The main advantage of trading using opposite Dyadic International and SenesTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyadic International 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 Dyadic International 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.