Correlation Between SentinelOne and LS Electric
Can any of the company-specific risk be diversified away by investing in both SentinelOne and LS Electric 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 SentinelOne and LS Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and LS Electric, you can compare the effects of market volatilities on SentinelOne and LS Electric 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 SentinelOne with a short position of LS Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and LS Electric.
Diversification Opportunities for SentinelOne and LS Electric
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and 010120 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and LS Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LS Electric and SentinelOne 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 SentinelOne are associated (or correlated) with LS Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LS Electric has no effect on the direction of SentinelOne i.e., SentinelOne and LS Electric go up and down completely randomly.
Pair Corralation between SentinelOne and LS Electric
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.52 times more return on investment than LS Electric. However, SentinelOne is 1.93 times less risky than LS Electric. It trades about 0.11 of its potential returns per unit of risk. LS Electric is currently generating about 0.01 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. LS Electric
Performance |
| Timeline |
| SentinelOne |
| LS Electric |
SentinelOne and LS Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and LS Electric
The main advantage of trading using opposite SentinelOne and LS Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, LS Electric 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 LS Electric will offset losses from the drop in LS Electric's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| LS Electric vs. Samsung Electronics Co | LS Electric vs. Samsung Electronics Co | LS Electric vs. KB Financial Group | LS Electric vs. Shinhan Financial Group |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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