Correlation Between GigaCloud Technology and SentinelOne
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology and SentinelOne 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 GigaCloud Technology and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaCloud Technology Class and SentinelOne, you can compare the effects of market volatilities on GigaCloud Technology and SentinelOne 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 GigaCloud Technology with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and SentinelOne.
Diversification Opportunities for GigaCloud Technology and SentinelOne
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GigaCloud and SentinelOne is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and GigaCloud Technology 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 GigaCloud Technology Class are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of GigaCloud Technology i.e., GigaCloud Technology and SentinelOne go up and down completely randomly.
Pair Corralation between GigaCloud Technology and SentinelOne
Considering the 90-day investment horizon GigaCloud Technology is expected to generate 1.45 times less return on investment than SentinelOne. In addition to that, GigaCloud Technology is 2.6 times more volatile than SentinelOne. It trades about 0.04 of its total potential returns per unit of risk. SentinelOne is currently generating about 0.13 per unit of volatility. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaCloud Technology Class vs. SentinelOne
Performance |
| Timeline |
| GigaCloud Technology |
| SentinelOne |
GigaCloud Technology and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and SentinelOne
The main advantage of trading using opposite GigaCloud Technology and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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