Correlation Between SentinelOne and Sun Max
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Sun Max 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 Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Sun Max Tech, you can compare the effects of market volatilities on SentinelOne and Sun Max 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 Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Sun Max.
Diversification Opportunities for SentinelOne and Sun Max
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Sun is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Sun Max Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Max Tech 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 Sun Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Max Tech has no effect on the direction of SentinelOne i.e., SentinelOne and Sun Max go up and down completely randomly.
Pair Corralation between SentinelOne and Sun Max
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.8 times more return on investment than Sun Max. However, SentinelOne is 1.8 times more volatile than Sun Max Tech. It trades about 0.06 of its potential returns per unit of risk. Sun Max Tech is currently generating about 0.04 per unit of risk. If you would invest 1,425 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 1,429 from holding SentinelOne or generate 100.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.78% |
| Values | Daily Returns |
SentinelOne vs. Sun Max Tech
Performance |
| Timeline |
| SentinelOne |
| Sun Max Tech |
SentinelOne and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Sun Max
The main advantage of trading using opposite SentinelOne and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Sun Max 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 Sun Max will offset losses from the drop in Sun Max's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Sun Max vs. Quanta Computer | Sun Max vs. Wiwynn Corp | Sun Max vs. Getac Technology Corp | Sun Max vs. IEI Integration Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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