Correlation Between ODDITY Tech and SentinelOne
Can any of the company-specific risk be diversified away by investing in both ODDITY Tech 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 ODDITY Tech and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ODDITY Tech Ltd and SentinelOne, you can compare the effects of market volatilities on ODDITY Tech 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 ODDITY Tech with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODDITY Tech and SentinelOne.
Diversification Opportunities for ODDITY Tech and SentinelOne
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ODDITY and SentinelOne is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding ODDITY Tech Ltd and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and ODDITY Tech 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 ODDITY Tech Ltd 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 ODDITY Tech i.e., ODDITY Tech and SentinelOne go up and down completely randomly.
Pair Corralation between ODDITY Tech and SentinelOne
Considering the 90-day investment horizon ODDITY Tech Ltd is expected to generate 1.16 times more return on investment than SentinelOne. However, ODDITY Tech is 1.16 times more volatile than SentinelOne. It trades about 0.03 of its potential returns per unit of risk. SentinelOne is currently generating about 0.02 per unit of risk. If you would invest 4,218 in ODDITY Tech Ltd on August 27, 2024 and sell it today you would earn a total of 338.00 from holding ODDITY Tech Ltd or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ODDITY Tech Ltd vs. SentinelOne
Performance |
| Timeline |
| ODDITY Tech |
| SentinelOne |
ODDITY Tech and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ODDITY Tech and SentinelOne
The main advantage of trading using opposite ODDITY Tech and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODDITY Tech 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.| ODDITY Tech vs. Duluth Holdings | ODDITY Tech vs. Tarsus Pharmaceuticals | ODDITY Tech vs. Steven Madden | ODDITY Tech vs. Acumen Pharmaceuticals |
| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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