Correlation Between SentinelOne and Aedifica
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Aedifica 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 Aedifica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Aedifica, you can compare the effects of market volatilities on SentinelOne and Aedifica 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 Aedifica. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Aedifica.
Diversification Opportunities for SentinelOne and Aedifica
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Aedifica is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aedifica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedifica 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 Aedifica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedifica has no effect on the direction of SentinelOne i.e., SentinelOne and Aedifica go up and down completely randomly.
Pair Corralation between SentinelOne and Aedifica
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Aedifica. In addition to that, SentinelOne is 2.75 times more volatile than Aedifica. It trades about -0.06 of its total potential returns per unit of risk. Aedifica is currently generating about 0.23 per unit of volatility. If you would invest 6,410 in Aedifica on October 30, 2025 and sell it today you would earn a total of 960.00 from holding Aedifica or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
SentinelOne vs. Aedifica
Performance |
| Timeline |
| SentinelOne |
| Aedifica |
SentinelOne and Aedifica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Aedifica
The main advantage of trading using opposite SentinelOne and Aedifica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Aedifica 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 Aedifica will offset losses from the drop in Aedifica's long position.| SentinelOne vs. Wex Inc | SentinelOne vs. Shift4 Payments | SentinelOne vs. StoneCo | SentinelOne vs. Core Scientific Common |
| Aedifica vs. Cofinimmo SA | Aedifica vs. Shurgard Self Storage | Aedifica vs. VGP NV | Aedifica vs. Montea CVA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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