Correlation Between SentinelOne and Alfa SAB
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Alfa SAB 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 Alfa SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Alfa SAB de, you can compare the effects of market volatilities on SentinelOne and Alfa SAB 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 Alfa SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Alfa SAB.
Diversification Opportunities for SentinelOne and Alfa SAB
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Alfa is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Alfa SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfa SAB de 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 Alfa SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfa SAB de has no effect on the direction of SentinelOne i.e., SentinelOne and Alfa SAB go up and down completely randomly.
Pair Corralation between SentinelOne and Alfa SAB
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.45 times more return on investment than Alfa SAB. However, SentinelOne is 1.45 times more volatile than Alfa SAB de. It trades about 0.07 of its potential returns per unit of risk. Alfa SAB de is currently generating about 0.06 per unit of risk. If you would invest 1,774 in SentinelOne on August 24, 2024 and sell it today you would earn a total of 1,074 from holding SentinelOne or generate 60.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
SentinelOne vs. Alfa SAB de
Performance |
| Timeline |
| SentinelOne |
| Alfa SAB de |
SentinelOne and Alfa SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Alfa SAB
The main advantage of trading using opposite SentinelOne and Alfa SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Alfa SAB 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 Alfa SAB will offset losses from the drop in Alfa SAB's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Alfa SAB vs. Grupo Financiero Inbursa | Alfa SAB vs. Kimberly Clark de Mxico | Alfa SAB vs. Grupo Televisa SAB | Alfa SAB vs. Grupo Bimbo SAB |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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