Correlation Between SentinelOne and KODEX K
Can any of the company-specific risk be diversified away by investing in both SentinelOne and KODEX K 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 KODEX K into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and KODEX K Robot Active, you can compare the effects of market volatilities on SentinelOne and KODEX K 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 KODEX K. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and KODEX K.
Diversification Opportunities for SentinelOne and KODEX K
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and KODEX is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and KODEX K Robot Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KODEX K Robot 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 KODEX K. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KODEX K Robot has no effect on the direction of SentinelOne i.e., SentinelOne and KODEX K go up and down completely randomly.
Pair Corralation between SentinelOne and KODEX K
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.27 times more return on investment than KODEX K. However, SentinelOne is 2.27 times more volatile than KODEX K Robot Active. It trades about 0.04 of its potential returns per unit of risk. KODEX K Robot Active is currently generating about 0.04 per unit of risk. If you would invest 1,665 in SentinelOne on November 5, 2024 and sell it today you would earn a total of 730.00 from holding SentinelOne or generate 43.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
SentinelOne vs. KODEX K Robot Active
Performance |
| Timeline |
| SentinelOne |
| KODEX K Robot |
SentinelOne and KODEX K Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and KODEX K
The main advantage of trading using opposite SentinelOne and KODEX K positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, KODEX K 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 KODEX K will offset losses from the drop in KODEX K's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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