Correlation Between SentinelOne and Asia Electronic
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Asia Electronic 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 Asia Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Asia Electronic Material, you can compare the effects of market volatilities on SentinelOne and Asia Electronic 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 Asia Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Asia Electronic.
Diversification Opportunities for SentinelOne and Asia Electronic
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Asia is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Asia Electronic Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Electronic Material 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 Asia Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Electronic Material has no effect on the direction of SentinelOne i.e., SentinelOne and Asia Electronic go up and down completely randomly.
Pair Corralation between SentinelOne and Asia Electronic
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.58 times more return on investment than Asia Electronic. However, SentinelOne is 2.58 times more volatile than Asia Electronic Material. It trades about 0.17 of its potential returns per unit of risk. Asia Electronic Material is currently generating about -0.13 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Asia Electronic Material
Performance |
| Timeline |
| SentinelOne |
| Asia Electronic Material |
SentinelOne and Asia Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Asia Electronic
The main advantage of trading using opposite SentinelOne and Asia Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Asia Electronic 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 Asia Electronic will offset losses from the drop in Asia Electronic's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Asia Electronic vs. GameSparcs Co | Asia Electronic vs. Microelectronics Technology | Asia Electronic vs. GAME HOURS | Asia Electronic vs. TWOWAY Communications |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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