Correlation Between SentinelOne and BIT Computer
Can any of the company-specific risk be diversified away by investing in both SentinelOne and BIT Computer 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 BIT Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and BIT Computer Co, you can compare the effects of market volatilities on SentinelOne and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and BIT Computer.
Diversification Opportunities for SentinelOne and BIT Computer
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and BIT is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of SentinelOne i.e., SentinelOne and BIT Computer go up and down completely randomly.
Pair Corralation between SentinelOne and BIT Computer
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.24 times more return on investment than BIT Computer. However, SentinelOne is 1.24 times more volatile than BIT Computer Co. It trades about 0.04 of its potential returns per unit of risk. BIT Computer Co is currently generating about -0.01 per unit of risk. If you would invest 1,552 in SentinelOne on November 27, 2024 and sell it today you would earn a total of 636.00 from holding SentinelOne or generate 40.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.16% |
| Values | Daily Returns |
SentinelOne vs. BIT Computer Co
Performance |
| Timeline |
| SentinelOne |
| BIT Computer |
SentinelOne and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and BIT Computer
The main advantage of trading using opposite SentinelOne and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| BIT Computer vs. Dongnam Chemical Co | BIT Computer vs. Hanwha Chemical Corp | BIT Computer vs. DataSolution | BIT Computer vs. Koryo Credit Information |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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