Correlation Between SentinelOne and AQ Group
Can any of the company-specific risk be diversified away by investing in both SentinelOne and AQ Group 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 AQ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and AQ Group AB, you can compare the effects of market volatilities on SentinelOne and AQ Group 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 AQ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and AQ Group.
Diversification Opportunities for SentinelOne and AQ Group
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and AQ Group is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and AQ Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AQ Group AB 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 AQ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AQ Group AB has no effect on the direction of SentinelOne i.e., SentinelOne and AQ Group go up and down completely randomly.
Pair Corralation between SentinelOne and AQ Group
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the AQ Group. In addition to that, SentinelOne is 1.17 times more volatile than AQ Group AB. It trades about -0.06 of its total potential returns per unit of risk. AQ Group AB is currently generating about 0.15 per unit of volatility. If you would invest 13,608 in AQ Group AB on October 25, 2024 and sell it today you would earn a total of 2,926 from holding AQ Group AB or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
SentinelOne vs. AQ Group AB
Performance |
| Timeline |
| SentinelOne |
| AQ Group AB |
SentinelOne and AQ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and AQ Group
The main advantage of trading using opposite SentinelOne and AQ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, AQ Group 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 AQ Group will offset losses from the drop in AQ Group's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| AQ Group vs. Inwido AB | AQ Group vs. Bufab Holding AB | AQ Group vs. Beijer Alma AB | AQ Group vs. Addtech AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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