Correlation Between SentinelOne and Lily Textile
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lily Textile 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 Lily Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lily Textile Co, you can compare the effects of market volatilities on SentinelOne and Lily Textile 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 Lily Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lily Textile.
Diversification Opportunities for SentinelOne and Lily Textile
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Lily is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lily Textile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lily Textile 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 Lily Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lily Textile has no effect on the direction of SentinelOne i.e., SentinelOne and Lily Textile go up and down completely randomly.
Pair Corralation between SentinelOne and Lily Textile
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.63 times more return on investment than Lily Textile. However, SentinelOne is 1.63 times more volatile than Lily Textile Co. It trades about 0.16 of its potential returns per unit of risk. Lily Textile Co is currently generating about 0.02 per unit of risk. If you would invest 1,683 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,125 from holding SentinelOne or generate 66.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lily Textile Co
Performance |
| Timeline |
| SentinelOne |
| Lily Textile |
SentinelOne and Lily Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lily Textile
The main advantage of trading using opposite SentinelOne and Lily Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lily Textile 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 Lily Textile will offset losses from the drop in Lily Textile's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Lily Textile vs. Yulon Finance Corp | Lily Textile vs. Taiwan Secom Co | Lily Textile vs. Pou Chen Corp | Lily Textile vs. Great Wall Enterprise |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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