Correlation Between SentinelOne and BioNTech
Can any of the company-specific risk be diversified away by investing in both SentinelOne and BioNTech 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 BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and BioNTech SE, you can compare the effects of market volatilities on SentinelOne and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and BioNTech.
Diversification Opportunities for SentinelOne and BioNTech
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and BioNTech is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of SentinelOne i.e., SentinelOne and BioNTech go up and down completely randomly.
Pair Corralation between SentinelOne and BioNTech
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.13 times more return on investment than BioNTech. However, SentinelOne is 1.13 times more volatile than BioNTech SE. It trades about 0.07 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.03 per unit of risk. If you would invest 1,909 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 945.00 from holding SentinelOne or generate 49.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.43% |
| Values | Daily Returns |
SentinelOne vs. BioNTech SE
Performance |
| Timeline |
| SentinelOne |
| BioNTech SE |
SentinelOne and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and BioNTech
The main advantage of trading using opposite SentinelOne and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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