Correlation Between SentinelOne and Aeon Credit
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Aeon Credit 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 Aeon Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Aeon Credit Service, you can compare the effects of market volatilities on SentinelOne and Aeon Credit 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 Aeon Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Aeon Credit.
Diversification Opportunities for SentinelOne and Aeon Credit
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Aeon is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aeon Credit Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Credit Service 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 Aeon Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Credit Service has no effect on the direction of SentinelOne i.e., SentinelOne and Aeon Credit go up and down completely randomly.
Pair Corralation between SentinelOne and Aeon Credit
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.55 times more return on investment than Aeon Credit. However, SentinelOne is 2.55 times more volatile than Aeon Credit Service. It trades about 0.09 of its potential returns per unit of risk. Aeon Credit Service is currently generating about -0.07 per unit of risk. If you would invest 2,443 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 345.00 from holding SentinelOne or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
SentinelOne vs. Aeon Credit Service
Performance |
| Timeline |
| SentinelOne |
| Aeon Credit Service |
SentinelOne and Aeon Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Aeon Credit
The main advantage of trading using opposite SentinelOne and Aeon Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Aeon Credit 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 Aeon Credit will offset losses from the drop in Aeon Credit's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Aeon Credit vs. Press Metal Bhd | Aeon Credit vs. Malayan Banking Bhd | Aeon Credit vs. Cengild Medical Berhad | Aeon Credit vs. Public Bank Bhd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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