Correlation Between Sensata Technologies and Acorn Energy,

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

By analyzing existing cross correlation between Sensata Technologies Holding and Acorn Energy, Common, you can compare the effects of market volatilities on Sensata Technologies and Acorn Energy, 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 Sensata Technologies with a short position of Acorn Energy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensata Technologies and Acorn Energy,.

Diversification Opportunities for Sensata Technologies and Acorn Energy,

0.13

Correlation Coefficient

Sensata Technologies  Acorn Energy,

Average diversification

The 3 months correlation between Sensata and Acorn is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sensata Technologies Holding and Acorn Energy, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorn Energy, Common and Sensata Technologies 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 Sensata Technologies Holding are associated (or correlated) with Acorn Energy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorn Energy, Common has no effect on the direction of Sensata Technologies i.e., Sensata Technologies and Acorn Energy, go up and down completely randomly.

Pair Corralation between Sensata Technologies and Acorn Energy,

Allowing for the 90-day total investment horizon Sensata Technologies Holding is expected to generate 0.37 times more return on investment than Acorn Energy,. However, Sensata Technologies Holding is 2.72 times less risky than Acorn Energy,. It trades about 0.04 of its potential returns per unit of risk. Acorn Energy, Common is currently generating about -0.09 per unit of risk. If you would invest  3,191  in Sensata Technologies Holding on September 5, 2025 and sell it today you would earn a total of  127.00  from holding Sensata Technologies Holding or generate 3.98% return on investment over 90 days.

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

Sensata Technologies Holding  vs.  Acorn Energy, Common

Sensata Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sensata Technologies Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Sensata Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Acorn Energy, Common

Risk-Adjusted Performance

Weakest

Over the last 90 days Acorn Energy, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Sensata Technologies and Acorn Energy,

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

The idea behind Sensata Technologies Holding and Acorn Energy, Common 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.