Correlation Between SentinelOne and Launch Technologies
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Launch Technologies 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 Launch Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Launch Technologies Co, you can compare the effects of market volatilities on SentinelOne and Launch Technologies 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 Launch Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Launch Technologies.
Diversification Opportunities for SentinelOne and Launch Technologies
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Launch is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Launch Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Launch Technologies 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 Launch Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Launch Technologies has no effect on the direction of SentinelOne i.e., SentinelOne and Launch Technologies go up and down completely randomly.
Pair Corralation between SentinelOne and Launch Technologies
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.3 times more return on investment than Launch Technologies. However, SentinelOne is 5.3 times more volatile than Launch Technologies Co. It trades about 0.11 of its potential returns per unit of risk. Launch Technologies Co is currently generating about -0.26 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Launch Technologies Co
Performance |
| Timeline |
| SentinelOne |
| Launch Technologies |
SentinelOne and Launch Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Launch Technologies
The main advantage of trading using opposite SentinelOne and Launch Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Launch Technologies 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 Launch Technologies will offset losses from the drop in Launch Technologies' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Launch Technologies vs. Univacco Technology | Launch Technologies vs. Integrated Service Technology | Launch Technologies vs. Microtips Technology | Launch Technologies vs. Arbor Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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