Correlation Between SentinelOne and Dong A
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Dong A 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 Dong A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Dong A Steel Technology, you can compare the effects of market volatilities on SentinelOne and Dong A 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 Dong A. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Dong A.
Diversification Opportunities for SentinelOne and Dong A
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Dong is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Dong A Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dong A 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 Dong A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dong A Steel has no effect on the direction of SentinelOne i.e., SentinelOne and Dong A go up and down completely randomly.
Pair Corralation between SentinelOne and Dong A
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.44 times more return on investment than Dong A. However, SentinelOne is 1.44 times more volatile than Dong A Steel Technology. It trades about 0.06 of its potential returns per unit of risk. Dong A Steel Technology is currently generating about -0.01 per unit of risk. If you would invest 1,328 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 1,460 from holding SentinelOne or generate 109.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.06% |
| Values | Daily Returns |
SentinelOne vs. Dong A Steel Technology
Performance |
| Timeline |
| SentinelOne |
| Dong A Steel |
SentinelOne and Dong A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Dong A
The main advantage of trading using opposite SentinelOne and Dong A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Dong A 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 Dong A will offset losses from the drop in Dong A's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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