Correlation Between SentinelOne and FNSTech
Can any of the company-specific risk be diversified away by investing in both SentinelOne and FNSTech 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 FNSTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and FNSTech Co, you can compare the effects of market volatilities on SentinelOne and FNSTech 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 FNSTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and FNSTech.
Diversification Opportunities for SentinelOne and FNSTech
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and FNSTech is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and FNSTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNSTech 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 FNSTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNSTech has no effect on the direction of SentinelOne i.e., SentinelOne and FNSTech go up and down completely randomly.
Pair Corralation between SentinelOne and FNSTech
Taking into account the 90-day investment horizon SentinelOne is expected to generate 8.33 times less return on investment than FNSTech. But when comparing it to its historical volatility, SentinelOne is 3.47 times less risky than FNSTech. It trades about 0.17 of its potential returns per unit of risk. FNSTech Co is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 802,000 in FNSTech Co on October 30, 2024 and sell it today you would earn a total of 286,000 from holding FNSTech Co or generate 35.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
SentinelOne vs. FNSTech Co
Performance |
| Timeline |
| SentinelOne |
| FNSTech |
SentinelOne and FNSTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and FNSTech
The main advantage of trading using opposite SentinelOne and FNSTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, FNSTech 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 FNSTech will offset losses from the drop in FNSTech's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Zscaler |
| FNSTech vs. Samsung Electronics Co | FNSTech vs. Samsung Electronics Co | FNSTech vs. LG Energy Solution | FNSTech vs. SK Hynix |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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