Correlation Between SentinelOne and LBI Capital
Can any of the company-specific risk be diversified away by investing in both SentinelOne and LBI Capital 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 LBI Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and LBI Capital Bhd, you can compare the effects of market volatilities on SentinelOne and LBI Capital 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 LBI Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and LBI Capital.
Diversification Opportunities for SentinelOne and LBI Capital
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and LBI is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and LBI Capital Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBI Capital Bhd 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 LBI Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBI Capital Bhd has no effect on the direction of SentinelOne i.e., SentinelOne and LBI Capital go up and down completely randomly.
Pair Corralation between SentinelOne and LBI Capital
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.49 times less return on investment than LBI Capital. But when comparing it to its historical volatility, SentinelOne is 2.06 times less risky than LBI Capital. It trades about 0.11 of its potential returns per unit of risk. LBI Capital Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 46.00 in LBI Capital Bhd on August 30, 2024 and sell it today you would earn a total of 3.00 from holding LBI Capital Bhd or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. LBI Capital Bhd
Performance |
| Timeline |
| SentinelOne |
| LBI Capital Bhd |
SentinelOne and LBI Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and LBI Capital
The main advantage of trading using opposite SentinelOne and LBI Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, LBI Capital 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 LBI Capital will offset losses from the drop in LBI Capital's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| LBI Capital vs. Apex Healthcare Bhd | LBI Capital vs. Sungei Bagan Rubber | LBI Capital vs. RHB Bank Bhd | LBI Capital vs. Daya Materials 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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