Correlation Between SentinelOne and Air T
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Air T 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 T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Air T Inc, you can compare the effects of market volatilities on SentinelOne and Air T 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 T. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Air T.
Diversification Opportunities for SentinelOne and Air T
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Air is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc 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 T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Air T go up and down completely randomly.
Pair Corralation between SentinelOne and Air T
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.8 times more return on investment than Air T. However, SentinelOne is 1.24 times less risky than Air T. It trades about -0.02 of its potential returns per unit of risk. Air T Inc is currently generating about -0.04 per unit of risk. If you would invest 2,172 in SentinelOne on January 11, 2025 and sell it today you would lose (414.00) from holding SentinelOne or give up 19.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Air T Inc
Performance |
| Timeline |
| SentinelOne |
| Air T Inc |
SentinelOne and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Air T
The main advantage of trading using opposite SentinelOne and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Air T 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 T will offset losses from the drop in Air T's long position.| SentinelOne vs. Uipath Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Oracle |
| Air T vs. Addentax Group Corp | Air T vs. Hub Group | Air T vs. Landstar System | Air T vs. JB Hunt Transport |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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