Correlation Between SentinelOne and Han Kook
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Han Kook 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 Han Kook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Han Kook Steel, you can compare the effects of market volatilities on SentinelOne and Han Kook 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 Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Han Kook.
Diversification Opportunities for SentinelOne and Han Kook
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Han is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Han Kook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook Steel 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 Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Steel has no effect on the direction of SentinelOne i.e., SentinelOne and Han Kook go up and down completely randomly.
Pair Corralation between SentinelOne and Han Kook
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.92 times more return on investment than Han Kook. However, SentinelOne is 1.92 times more volatile than Han Kook Steel. It trades about 0.19 of its potential returns per unit of risk. Han Kook Steel is currently generating about -0.14 per unit of risk. If you would invest 2,597 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 257.00 from holding SentinelOne or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Han Kook Steel
Performance |
| Timeline |
| SentinelOne |
| Han Kook Steel |
SentinelOne and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Han Kook
The main advantage of trading using opposite SentinelOne and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Han Kook 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 Han Kook will offset losses from the drop in Han Kook's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Han Kook vs. Dong Il Steel | Han Kook vs. Seah Steel Corp | Han Kook vs. Ajusteel Co | Han Kook vs. Samwon Steel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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