Correlation Between SentinelOne and Air France
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Air France 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 Air France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Air France KLM SA, you can compare the effects of market volatilities on SentinelOne and Air France 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 Air France. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Air France.
Diversification Opportunities for SentinelOne and Air France
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Air is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Air France KLM SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air France KLM 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 Air France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air France KLM has no effect on the direction of SentinelOne i.e., SentinelOne and Air France go up and down completely randomly.
Pair Corralation between SentinelOne and Air France
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.6 times more return on investment than Air France. However, SentinelOne is 1.6 times more volatile than Air France KLM SA. It trades about 0.06 of its potential returns per unit of risk. Air France KLM SA is currently generating about -0.03 per unit of risk. If you would invest 1,425 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 1,429 from holding SentinelOne or generate 100.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.22% |
| Values | Daily Returns |
SentinelOne vs. Air France KLM SA
Performance |
| Timeline |
| SentinelOne |
| Air France KLM |
SentinelOne and Air France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Air France
The main advantage of trading using opposite SentinelOne and Air France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Air France 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 Air France will offset losses from the drop in Air France's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Air France vs. Manitou BF SA | Air France vs. Ossiam Minimum Variance | Air France vs. Granite 3x LVMH | Air France vs. 21Shares Polkadot ETP |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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