Correlation Between Senseonics Holdings and Foresight Autonomous

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

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

Diversification Opportunities for Senseonics Holdings and Foresight Autonomous

-0.34

Correlation Coefficient

Senseonics Holdings  Foresight Autonomous

Very good diversification

The 3 months correlation between Senseonics and Foresight is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Senseonics Holdings and Foresight Autonomous Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresight Autonomous and Senseonics Holdings 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 Senseonics Holdings are associated (or correlated) with Foresight Autonomous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresight Autonomous has no effect on the direction of Senseonics Holdings i.e., Senseonics Holdings and Foresight Autonomous go up and down completely randomly.

Pair Corralation between Senseonics Holdings and Foresight Autonomous

Given the investment horizon of 90 days Senseonics Holdings is expected to under-perform the Foresight Autonomous. In addition to that, Senseonics Holdings is 1.08 times more volatile than Foresight Autonomous Holdings. It trades about -0.09 of its total potential returns per unit of risk. Foresight Autonomous Holdings is currently generating about 0.08 per unit of volatility. If you would invest  100.00  in Foresight Autonomous Holdings on February 17, 2024 and sell it today you would earn a total of  17.00  from holding Foresight Autonomous Holdings or generate 17.0% return on investment over 90 days.

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

Senseonics Holdings  vs.  Foresight Autonomous Holdings

Senseonics Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Senseonics Holdings 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 basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Foresight Autonomous

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Foresight Autonomous Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Foresight Autonomous showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Senseonics Holdings and Foresight Autonomous

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

The idea behind Senseonics Holdings and Foresight Autonomous Holdings 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.