Correlation Between SentinelOne and STI
Can any of the company-specific risk be diversified away by investing in both SentinelOne and STI 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 STI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and STI Co, you can compare the effects of market volatilities on SentinelOne and STI 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 STI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and STI.
Diversification Opportunities for SentinelOne and STI
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and STI is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and STI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STI Co 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 STI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STI Co has no effect on the direction of SentinelOne i.e., SentinelOne and STI go up and down completely randomly.
Pair Corralation between SentinelOne and STI
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.7 times more return on investment than STI. However, SentinelOne is 1.42 times less risky than STI. It trades about 0.12 of its potential returns per unit of risk. STI Co is currently generating about -0.34 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. STI Co
Performance |
| Timeline |
| SentinelOne |
| STI Co |
SentinelOne and STI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and STI
The main advantage of trading using opposite SentinelOne and STI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, STI 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 STI will offset losses from the drop in STI's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| STI vs. Ssangyong Information Communication | STI vs. Daishin Information Communications | STI vs. Daedong Metals Co | STI vs. Daesung Hi Tech Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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