Correlation Between SentinelOne and Global Standard
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Global Standard 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 Global Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Global Standard Technology, you can compare the effects of market volatilities on SentinelOne and Global Standard 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 Global Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Global Standard.
Diversification Opportunities for SentinelOne and Global Standard
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and Global is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Global Standard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Standard Tech 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 Global Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Standard Tech has no effect on the direction of SentinelOne i.e., SentinelOne and Global Standard go up and down completely randomly.
Pair Corralation between SentinelOne and Global Standard
Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.66 times less return on investment than Global Standard. But when comparing it to its historical volatility, SentinelOne is 1.86 times less risky than Global Standard. It trades about 0.14 of its potential returns per unit of risk. Global Standard Technology is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,674,000 in Global Standard Technology on October 29, 2024 and sell it today you would earn a total of 275,000 from holding Global Standard Technology or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
SentinelOne vs. Global Standard Technology
Performance |
| Timeline |
| SentinelOne |
| Global Standard Tech |
SentinelOne and Global Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Global Standard
The main advantage of trading using opposite SentinelOne and Global Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Global Standard 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 Global Standard will offset losses from the drop in Global Standard's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. BLOCK INC | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings |
| Global Standard vs. KMH Hitech Co | Global Standard vs. BGF Retail Co | Global Standard vs. Vitzro Tech Co | Global Standard vs. Korean Drug 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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