Correlation Between SentinelOne and AFC Gamma
Can any of the company-specific risk be diversified away by investing in both SentinelOne and AFC Gamma 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 AFC Gamma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and AFC Gamma, you can compare the effects of market volatilities on SentinelOne and AFC Gamma 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 AFC Gamma. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and AFC Gamma.
Diversification Opportunities for SentinelOne and AFC Gamma
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and AFC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and AFC Gamma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Gamma 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 AFC Gamma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Gamma has no effect on the direction of SentinelOne i.e., SentinelOne and AFC Gamma go up and down completely randomly.
Pair Corralation between SentinelOne and AFC Gamma
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.43 times more return on investment than AFC Gamma. However, SentinelOne is 1.43 times more volatile than AFC Gamma. It trades about 0.13 of its potential returns per unit of risk. AFC Gamma is currently generating about -0.12 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 179.00 from holding SentinelOne or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. AFC Gamma
Performance |
| Timeline |
| SentinelOne |
| AFC Gamma |
SentinelOne and AFC Gamma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and AFC Gamma
The main advantage of trading using opposite SentinelOne and AFC Gamma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, AFC Gamma 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 AFC Gamma will offset losses from the drop in AFC Gamma's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| AFC Gamma vs. Newlake Capital Partners | AFC Gamma vs. SBA Communications Corp | AFC Gamma vs. Gladstone Land | AFC Gamma vs. Lamar Advertising |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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