Correlation Between SenesTech and Panbela Therapeutics

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

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

Diversification Opportunities for SenesTech and Panbela Therapeutics

0.27

Correlation Coefficient

SenesTech  Panbela Therapeutics

Modest diversification

The 3 months correlation between SenesTech and Panbela is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SenesTech and Panbela Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panbela Therapeutics 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 Panbela Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panbela Therapeutics has no effect on the direction of SenesTech i.e., SenesTech and Panbela Therapeutics go up and down completely randomly.

Pair Corralation between SenesTech and Panbela Therapeutics

Given the investment horizon of 90 days SenesTech is expected to generate 0.34 times more return on investment than Panbela Therapeutics. However, SenesTech is 2.93 times less risky than Panbela Therapeutics. It trades about -0.06 of its potential returns per unit of risk. Panbela Therapeutics is currently generating about -0.12 per unit of risk. If you would invest  513.00  in SenesTech on July 5, 2025 and sell it today you would lose (136.50) from holding SenesTech or give up 26.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

SenesTech  vs.  Panbela Therapeutics

SenesTech

Risk-Adjusted Performance

Weakest

Over the last 90 days SenesTech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Panbela Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Panbela Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with SenesTech and Panbela Therapeutics

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

The idea behind SenesTech and Panbela Therapeutics 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.