Correlation Between SentinelOne and GrandTech
Can any of the company-specific risk be diversified away by investing in both SentinelOne and GrandTech 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 GrandTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and GrandTech CG Systems, you can compare the effects of market volatilities on SentinelOne and GrandTech 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 GrandTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and GrandTech.
Diversification Opportunities for SentinelOne and GrandTech
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and GrandTech is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and GrandTech CG Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrandTech CG Systems 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 GrandTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrandTech CG Systems has no effect on the direction of SentinelOne i.e., SentinelOne and GrandTech go up and down completely randomly.
Pair Corralation between SentinelOne and GrandTech
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the GrandTech. In addition to that, SentinelOne is 2.73 times more volatile than GrandTech CG Systems. It trades about -0.18 of its total potential returns per unit of risk. GrandTech CG Systems is currently generating about 0.3 per unit of volatility. If you would invest 5,550 in GrandTech CG Systems on November 28, 2024 and sell it today you would earn a total of 250.00 from holding GrandTech CG Systems or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
SentinelOne vs. GrandTech CG Systems
Performance |
| Timeline |
| SentinelOne |
| GrandTech CG Systems |
SentinelOne and GrandTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and GrandTech
The main advantage of trading using opposite SentinelOne and GrandTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, GrandTech 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 GrandTech will offset losses from the drop in GrandTech's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| GrandTech vs. Elan Microelectronics Corp | GrandTech vs. Cameo Communications | GrandTech vs. Far EasTone Telecommunications | GrandTech vs. Tai Tung Communication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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