Correlation Between SentinelOne and LB Investment
Can any of the company-specific risk be diversified away by investing in both SentinelOne and LB Investment 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 LB Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and LB Investment, you can compare the effects of market volatilities on SentinelOne and LB Investment 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 LB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and LB Investment.
Diversification Opportunities for SentinelOne and LB Investment
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and 309960 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and LB Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LB Investment 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 LB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LB Investment has no effect on the direction of SentinelOne i.e., SentinelOne and LB Investment go up and down completely randomly.
Pair Corralation between SentinelOne and LB Investment
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.77 times more return on investment than LB Investment. However, SentinelOne is 1.3 times less risky than LB Investment. It trades about 0.09 of its potential returns per unit of risk. LB Investment is currently generating about -0.11 per unit of risk. If you would invest 2,269 in SentinelOne on October 25, 2024 and sell it today you would earn a total of 44.00 from holding SentinelOne or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
SentinelOne vs. LB Investment
Performance |
| Timeline |
| SentinelOne |
| LB Investment |
SentinelOne and LB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and LB Investment
The main advantage of trading using opposite SentinelOne and LB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, LB Investment 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 LB Investment will offset losses from the drop in LB Investment's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| LB Investment vs. Samsung Electronics Co | LB Investment vs. Samsung Electronics Co | LB Investment vs. LG Energy Solution | LB Investment 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |