Correlation Between SentinelOne and AAC Technologies
Can any of the company-specific risk be diversified away by investing in both SentinelOne and AAC 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 AAC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and AAC Technologies Holdings, you can compare the effects of market volatilities on SentinelOne and AAC 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 AAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and AAC Technologies.
Diversification Opportunities for SentinelOne and AAC Technologies
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and AAC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and AAC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Technologies Holdings 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 AAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Technologies Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and AAC Technologies go up and down completely randomly.
Pair Corralation between SentinelOne and AAC Technologies
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the AAC Technologies. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.34 times less risky than AAC Technologies. The stock trades about -0.11 of its potential returns per unit of risk. The AAC Technologies Holdings is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 497.00 in AAC Technologies Holdings on November 28, 2024 and sell it today you would earn a total of 114.00 from holding AAC Technologies Holdings or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. AAC Technologies Holdings
Performance |
| Timeline |
| SentinelOne |
| AAC Technologies Holdings |
SentinelOne and AAC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and AAC Technologies
The main advantage of trading using opposite SentinelOne and AAC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, AAC 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 AAC Technologies will offset losses from the drop in AAC Technologies' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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