Correlation Between ICTS International and SenesTech

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

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

Diversification Opportunities for ICTS International and SenesTech

0.31

Correlation Coefficient

ICTS International  SenesTech

Weak diversification

The 3 months correlation between ICTS and SenesTech is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ICTS International NV and SenesTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenesTech and ICTS 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 ICTS International NV 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 ICTS International i.e., ICTS International and SenesTech go up and down completely randomly.

Pair Corralation between ICTS International and SenesTech

Assuming the 90 days horizon ICTS International is expected to generate 8.39 times less return on investment than SenesTech. But when comparing it to its historical volatility, ICTS International NV is 2.69 times less risky than SenesTech. It trades about 0.05 of its potential returns per unit of risk. SenesTech is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  278.00  in SenesTech on May 11, 2025 and sell it today you would earn a total of  191.00  from holding SenesTech or generate 68.71% return on investment over 90 days.

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

ICTS International NV  vs.  SenesTech

ICTS International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ICTS International NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, ICTS International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 ICTS International and SenesTech

The main advantage of trading using opposite ICTS International and SenesTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICTS 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 ICTS International NV 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.