Correlation Between SenesTech and Avricore Health

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

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

Diversification Opportunities for SenesTech and Avricore Health

0.52

Correlation Coefficient

SenesTech  Avricore Health

Very weak diversification

The 3 months correlation between SenesTech and Avricore is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SenesTech and Avricore Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avricore Health and SenesTech 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 SenesTech are associated (or correlated) with Avricore Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avricore Health has no effect on the direction of SenesTech i.e., SenesTech and Avricore Health go up and down completely randomly.

Pair Corralation between SenesTech and Avricore Health

Given the investment horizon of 90 days SenesTech is expected to generate 4.09 times less return on investment than Avricore Health. But when comparing it to its historical volatility, SenesTech is 4.08 times less risky than Avricore Health. It trades about 0.14 of its potential returns per unit of risk. Avricore Health is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  4.63  in Avricore Health on May 13, 2025 and sell it today you would earn a total of  1.23  from holding Avricore Health or generate 26.57% return on investment over 90 days.

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

SenesTech  vs.  Avricore Health

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.

Avricore Health

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Avricore Health are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Avricore Health reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SenesTech and Avricore Health

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

The idea behind SenesTech and Avricore Health 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.