Correlation Between SenesTech and Spectral Med

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

By analyzing existing cross correlation between SenesTech and Spectral Med, you can compare the effects of market volatilities on SenesTech and Spectral Med 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 Spectral Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of SenesTech and Spectral Med.

Diversification Opportunities for SenesTech and Spectral Med

-0.23

Correlation Coefficient

SenesTech  Spectral Med

Very good diversification

The 3 months correlation between SenesTech and Spectral is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SenesTech and Spectral Med in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectral Med 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 Spectral Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectral Med has no effect on the direction of SenesTech i.e., SenesTech and Spectral Med go up and down completely randomly.

Pair Corralation between SenesTech and Spectral Med

Given the investment horizon of 90 days SenesTech is expected to generate 1.65 times more return on investment than Spectral Med. However, SenesTech is 1.65 times more volatile than Spectral Med. It trades about 0.15 of its potential returns per unit of risk. Spectral Med is currently generating about 0.07 per unit of risk. If you would invest  267.00  in SenesTech on May 17, 2025 and sell it today you would earn a total of  194.00  from holding SenesTech or generate 72.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SenesTech  vs.  Spectral Med

SenesTech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 12 (%) 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.

Spectral Med

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Spectral Med are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Spectral Med reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SenesTech and Spectral Med

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

The idea behind SenesTech and Spectral Med 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.