Correlation Between Martin Marietta and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Martin Marietta and Senmiao Technology 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 Martin Marietta and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and Senmiao Technology, you can compare the effects of market volatilities on Martin Marietta and Senmiao Technology 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 Martin Marietta with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and Senmiao Technology.
Diversification Opportunities for Martin Marietta and Senmiao Technology
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martin and Senmiao is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology and Martin Marietta 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 Martin Marietta Materials are associated (or correlated) with Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of Martin Marietta i.e., Martin Marietta and Senmiao Technology go up and down completely randomly.
Pair Corralation between Martin Marietta and Senmiao Technology
Considering the 90-day investment horizon Martin Marietta Materials is expected to generate 0.12 times more return on investment than Senmiao Technology. However, Martin Marietta Materials is 8.55 times less risky than Senmiao Technology. It trades about 0.16 of its potential returns per unit of risk. Senmiao Technology is currently generating about -0.12 per unit of risk. If you would invest 54,161 in Martin Marietta Materials on June 2, 2025 and sell it today you would earn a total of 7,479 from holding Martin Marietta Materials or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Marietta Materials vs. Senmiao Technology
Performance |
| Timeline |
| Martin Marietta Materials |
| Senmiao Technology |
Martin Marietta and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and Senmiao Technology
The main advantage of trading using opposite Martin Marietta and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, Senmiao Technology 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 Senmiao Technology will offset losses from the drop in Senmiao Technology's long position.| Martin Marietta vs. Vulcan Materials | Martin Marietta vs. Eagle Materials | Martin Marietta vs. CRH PLC ADR | Martin Marietta vs. Cemex SAB de |
| Senmiao Technology vs. Federal Agricultural Mortgage | Senmiao Technology vs. GreenPro Capital Corp | Senmiao Technology vs. Kaixin Auto Holdings | Senmiao Technology vs. ReTo Eco Solutions |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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