Correlation Between SentinelOne and Groupimo
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Groupimo 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 Groupimo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Groupimo SA, you can compare the effects of market volatilities on SentinelOne and Groupimo 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 Groupimo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Groupimo.
Diversification Opportunities for SentinelOne and Groupimo
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Groupimo is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Groupimo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupimo SA 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 Groupimo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupimo SA has no effect on the direction of SentinelOne i.e., SentinelOne and Groupimo go up and down completely randomly.
Pair Corralation between SentinelOne and Groupimo
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.37 times more return on investment than Groupimo. However, SentinelOne is 2.71 times less risky than Groupimo. It trades about 0.08 of its potential returns per unit of risk. Groupimo SA is currently generating about -0.02 per unit of risk. If you would invest 1,548 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,247 from holding SentinelOne or generate 80.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.82% |
| Values | Daily Returns |
SentinelOne vs. Groupimo SA
Performance |
| Timeline |
| SentinelOne |
| Groupimo SA |
SentinelOne and Groupimo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Groupimo
The main advantage of trading using opposite SentinelOne and Groupimo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Groupimo 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 Groupimo will offset losses from the drop in Groupimo's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Groupimo vs. Altarea SCA | Groupimo vs. Carmila SA | Groupimo vs. Manitou BF SA | Groupimo vs. Ossiam Minimum Variance |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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