Correlation Between SentinelOne and Shih Kuen
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Shih Kuen 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 Shih Kuen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Shih Kuen Plastics, you can compare the effects of market volatilities on SentinelOne and Shih Kuen 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 Shih Kuen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Shih Kuen.
Diversification Opportunities for SentinelOne and Shih Kuen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Shih is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Shih Kuen Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shih Kuen Plastics 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 Shih Kuen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shih Kuen Plastics has no effect on the direction of SentinelOne i.e., SentinelOne and Shih Kuen go up and down completely randomly.
Pair Corralation between SentinelOne and Shih Kuen
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.96 times more return on investment than Shih Kuen. However, SentinelOne is 1.96 times more volatile than Shih Kuen Plastics. It trades about 0.17 of its potential returns per unit of risk. Shih Kuen Plastics is currently generating about -0.19 per unit of risk. If you would invest 2,626 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 228.00 from holding SentinelOne or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Shih Kuen Plastics
Performance |
| Timeline |
| SentinelOne |
| Shih Kuen Plastics |
SentinelOne and Shih Kuen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Shih Kuen
The main advantage of trading using opposite SentinelOne and Shih Kuen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Shih Kuen 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 Shih Kuen will offset losses from the drop in Shih Kuen's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Shih Kuen vs. SS Healthcare Holding | Shih Kuen vs. Power Wind Health | Shih Kuen vs. Pacific Hospital Supply | Shih Kuen vs. Davicom Semiconductor |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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