Correlation Between SentinelOne and 88 Energy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and 88 Energy 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 88 Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and 88 Energy, you can compare the effects of market volatilities on SentinelOne and 88 Energy 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 88 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and 88 Energy.
Diversification Opportunities for SentinelOne and 88 Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and 88E is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and 88 Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88 Energy 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 88 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88 Energy has no effect on the direction of SentinelOne i.e., SentinelOne and 88 Energy go up and down completely randomly.
Pair Corralation between SentinelOne and 88 Energy
Taking into account the 90-day investment horizon SentinelOne is expected to generate 9.53 times less return on investment than 88 Energy. But when comparing it to its historical volatility, SentinelOne is 5.26 times less risky than 88 Energy. It trades about 0.04 of its potential returns per unit of risk. 88 Energy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.09 in 88 Energy on November 5, 2024 and sell it today you would lose (0.89) from holding 88 Energy or give up 81.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
SentinelOne vs. 88 Energy
Performance |
| Timeline |
| SentinelOne |
| 88 Energy |
SentinelOne and 88 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and 88 Energy
The main advantage of trading using opposite SentinelOne and 88 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, 88 Energy 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 88 Energy will offset losses from the drop in 88 Energy's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| 88 Energy vs. AiMedia Technologies | 88 Energy vs. Ainsworth Game Technology | 88 Energy vs. oOhMedia | 88 Energy vs. Lendlease Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
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