Correlation Between SentinelOne and ATON
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ATON 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 ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ATON Inc, you can compare the effects of market volatilities on SentinelOne and ATON 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 ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ATON.
Diversification Opportunities for SentinelOne and ATON
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and ATON is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc 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 ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of SentinelOne i.e., SentinelOne and ATON go up and down completely randomly.
Pair Corralation between SentinelOne and ATON
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.57 times less return on investment than ATON. But when comparing it to its historical volatility, SentinelOne is 3.06 times less risky than ATON. It trades about 0.13 of its potential returns per unit of risk. ATON Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 399,500 in ATON Inc on August 29, 2024 and sell it today you would earn a total of 172,500 from holding ATON Inc or generate 43.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. ATON Inc
Performance |
| Timeline |
| SentinelOne |
| ATON Inc |
SentinelOne and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ATON
The main advantage of trading using opposite SentinelOne and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| ATON vs. Daelim Trading Co | ATON vs. LB Investment | ATON vs. Samick Musical Instruments | ATON vs. Dongwon Metal 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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