Correlation Between Sensata Technologies and Data443 Risk

Can any of the company-specific risk be diversified away by investing in both Sensata Technologies and Data443 Risk 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 Data443 Risk 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 Data443 Risk Mitigation, you can compare the effects of market volatilities on Sensata Technologies and Data443 Risk 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 Data443 Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensata Technologies and Data443 Risk.

Diversification Opportunities for Sensata Technologies and Data443 Risk

-0.37

Correlation Coefficient

Sensata Technologies  Data443 Risk

Very good diversification

The 3 months correlation between Sensata and Data443 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sensata Technologies Holding and Data443 Risk Mitigation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data443 Risk Mitigation 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 Data443 Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data443 Risk Mitigation has no effect on the direction of Sensata Technologies i.e., Sensata Technologies and Data443 Risk go up and down completely randomly.

Pair Corralation between Sensata Technologies and Data443 Risk

Allowing for the 90-day total investment horizon Sensata Technologies Holding is expected to generate 0.17 times more return on investment than Data443 Risk. However, Sensata Technologies Holding is 5.97 times less risky than Data443 Risk. It trades about 0.19 of its potential returns per unit of risk. Data443 Risk Mitigation is currently generating about 0.03 per unit of risk. If you would invest  2,547  in Sensata Technologies Holding on May 21, 2025 and sell it today you would earn a total of  689.00  from holding Sensata Technologies Holding or generate 27.05% return on investment over 90 days.

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

Sensata Technologies Holding  vs.  Data443 Risk Mitigation

Sensata Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sensata Technologies Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Sensata Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Data443 Risk Mitigation

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Data443 Risk Mitigation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental indicators, Data443 Risk unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sensata Technologies and Data443 Risk

The main advantage of trading using opposite Sensata Technologies and Data443 Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensata Technologies position performs unexpectedly, Data443 Risk 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 Data443 Risk will offset losses from the drop in Data443 Risk's long position.

The idea behind Sensata Technologies Holding and Data443 Risk Mitigation 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.