Correlation Between SentinelOne and AstroNova
Can any of the company-specific risk be diversified away by investing in both SentinelOne and AstroNova 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 AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and AstroNova, you can compare the effects of market volatilities on SentinelOne and AstroNova 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 AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and AstroNova.
Diversification Opportunities for SentinelOne and AstroNova
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and AstroNova is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova 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 AstroNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstroNova has no effect on the direction of SentinelOne i.e., SentinelOne and AstroNova go up and down completely randomly.
Pair Corralation between SentinelOne and AstroNova
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the AstroNova. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.02 times less risky than AstroNova. The stock trades about -0.03 of its potential returns per unit of risk. The AstroNova is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,228 in AstroNova on November 1, 2024 and sell it today you would lose (77.00) from holding AstroNova or give up 6.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. AstroNova
Performance |
| Timeline |
| SentinelOne |
| AstroNova |
SentinelOne and AstroNova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and AstroNova
The main advantage of trading using opposite SentinelOne and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, AstroNova 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 AstroNova will offset losses from the drop in AstroNova's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Zscaler |
| AstroNova vs. Key Tronic | AstroNova vs. Identiv | AstroNova vs. Red Cat Holdings | AstroNova vs. TransAct Technologies Incorporated |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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