Correlation Between Evolus and SenesTech

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

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

Diversification Opportunities for Evolus and SenesTech

-0.64

Correlation Coefficient

Evolus  SenesTech

Excellent diversification

The 3 months correlation between Evolus and SenesTech is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Evolus Inc and SenesTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenesTech and Evolus 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 Evolus Inc 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 Evolus i.e., Evolus and SenesTech go up and down completely randomly.

Pair Corralation between Evolus and SenesTech

Given the investment horizon of 90 days Evolus Inc is expected to under-perform the SenesTech. But the stock apears to be less risky and, when comparing its historical volatility, Evolus Inc is 2.16 times less risky than SenesTech. The stock trades about -0.09 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  225.00  in SenesTech on April 30, 2025 and sell it today you would earn a total of  322.00  from holding SenesTech or generate 143.11% return on investment over 90 days.

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

Evolus Inc  vs.  SenesTech

Evolus Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolus Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential 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.

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 Evolus and SenesTech

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

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.