Correlation Between SentinelOne and China Glaze
Can any of the company-specific risk be diversified away by investing in both SentinelOne and China Glaze 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 China Glaze into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and China Glaze Co, you can compare the effects of market volatilities on SentinelOne and China Glaze 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 China Glaze. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and China Glaze.
Diversification Opportunities for SentinelOne and China Glaze
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and China is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and China Glaze Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Glaze 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 China Glaze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Glaze has no effect on the direction of SentinelOne i.e., SentinelOne and China Glaze go up and down completely randomly.
Pair Corralation between SentinelOne and China Glaze
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.79 times more return on investment than China Glaze. However, SentinelOne is 1.26 times less risky than China Glaze. It trades about 0.11 of its potential returns per unit of risk. China Glaze Co is currently generating about 0.06 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. China Glaze Co
Performance |
| Timeline |
| SentinelOne |
| China Glaze |
SentinelOne and China Glaze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and China Glaze
The main advantage of trading using opposite SentinelOne and China Glaze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, China Glaze 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 China Glaze will offset losses from the drop in China Glaze's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| China Glaze vs. Champion Building Materials | China Glaze vs. Taiwan Glass Ind | China Glaze vs. Chung Hwa Pulp | China Glaze vs. China Man Made Fiber |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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