Correlation Between SentinelOne and Apptech Corp
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Apptech Corp 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 Apptech Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Apptech Corp, you can compare the effects of market volatilities on SentinelOne and Apptech Corp 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 Apptech Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Apptech Corp.
Diversification Opportunities for SentinelOne and Apptech Corp
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Apptech is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Apptech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apptech Corp 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 Apptech Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apptech Corp has no effect on the direction of SentinelOne i.e., SentinelOne and Apptech Corp go up and down completely randomly.
Pair Corralation between SentinelOne and Apptech Corp
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.45 times more return on investment than Apptech Corp. However, SentinelOne is 2.25 times less risky than Apptech Corp. It trades about 0.09 of its potential returns per unit of risk. Apptech Corp is currently generating about -0.08 per unit of risk. If you would invest 2,443 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 345.00 from holding SentinelOne or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Apptech Corp
Performance |
| Timeline |
| SentinelOne |
| Apptech Corp |
SentinelOne and Apptech Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Apptech Corp
The main advantage of trading using opposite SentinelOne and Apptech Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Apptech Corp 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 Apptech Corp will offset losses from the drop in Apptech Corp's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Apptech Corp vs. GigaCloud Technology Class | Apptech Corp vs. Arqit Quantum | Apptech Corp vs. Telos Corp | Apptech Corp vs. Cemtrex |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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