Correlation Between SentinelOne and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ANTA Sports 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 ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ANTA Sports Products, you can compare the effects of market volatilities on SentinelOne and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ANTA Sports.
Diversification Opportunities for SentinelOne and ANTA Sports
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and ANTA is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of SentinelOne i.e., SentinelOne and ANTA Sports go up and down completely randomly.
Pair Corralation between SentinelOne and ANTA Sports
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.29 times more return on investment than ANTA Sports. However, SentinelOne is 1.29 times more volatile than ANTA Sports Products. It trades about 0.04 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.02 per unit of risk. If you would invest 1,525 in SentinelOne on November 1, 2024 and sell it today you would earn a total of 842.00 from holding SentinelOne or generate 55.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.6% |
| Values | Daily Returns |
SentinelOne vs. ANTA Sports Products
Performance |
| Timeline |
| SentinelOne |
| ANTA Sports Products |
SentinelOne and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ANTA Sports
The main advantage of trading using opposite SentinelOne and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Zscaler |
| ANTA Sports vs. Molina Healthcare | ANTA Sports vs. CARDINAL HEALTH | ANTA Sports vs. CLOVER HEALTH INV | ANTA Sports vs. BJs Restaurants |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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