Correlation Between Sena J and XSpring Capital

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

By analyzing existing cross correlation between Sena J Property and XSpring Capital Public, you can compare the effects of market volatilities on Sena J and XSpring Capital 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 Sena J with a short position of XSpring Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sena J and XSpring Capital.

Diversification Opportunities for Sena J and XSpring Capital

0.27

Correlation Coefficient

Sena J  XSpring Capital

Modest diversification

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

Pair Corralation between Sena J and XSpring Capital

Assuming the 90 days trading horizon Sena J Property is expected to generate 1.11 times more return on investment than XSpring Capital. However, Sena J is 1.11 times more volatile than XSpring Capital Public. It trades about 0.06 of its potential returns per unit of risk. XSpring Capital Public is currently generating about -0.17 per unit of risk. If you would invest  21.00  in Sena J Property on April 24, 2025 and sell it today you would earn a total of  2.00  from holding Sena J Property or generate 9.52% return on investment over 90 days.

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

Sena J Property  vs.  XSpring Capital Public

Sena J Property

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sena J Property are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Sena J disclosed solid returns over the last few months and may actually be approaching a breakup point.

XSpring Capital Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days XSpring Capital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Sena J and XSpring Capital

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

The idea behind Sena J Property and XSpring Capital Public 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.