Correlation Between Nisun International and Sentage Holdings

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

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

Diversification Opportunities for Nisun International and Sentage Holdings

-0.37

Correlation Coefficient

Nisun International  Sentage Holdings

Very good diversification

The 3 months correlation between Nisun and Sentage is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nisun International Enterprise and Sentage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentage Holdings and Nisun 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 Nisun International Enterprise are associated (or correlated) with Sentage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentage Holdings has no effect on the direction of Nisun International i.e., Nisun International and Sentage Holdings go up and down completely randomly.

Pair Corralation between Nisun International and Sentage Holdings

Given the investment horizon of 90 days Nisun International Enterprise is expected to under-perform the Sentage Holdings. In addition to that, Nisun International is 1.9 times more volatile than Sentage Holdings. It trades about -0.04 of its total potential returns per unit of risk. Sentage Holdings is currently generating about 0.02 per unit of volatility. If you would invest  168.00  in Sentage Holdings on May 5, 2025 and sell it today you would earn a total of  3.00  from holding Sentage Holdings or generate 1.79% return on investment over 90 days.

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

Nisun International Enterprise  vs.  Sentage Holdings

Nisun International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nisun International Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Sentage Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sentage Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sentage Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Nisun International and Sentage Holdings

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

The idea behind Nisun International Enterprise and Sentage Holdings 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.