Correlation Between SentinelOne and A SPAC
Can any of the company-specific risk be diversified away by investing in both SentinelOne and A SPAC 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 A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and A SPAC II, you can compare the effects of market volatilities on SentinelOne and A SPAC 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 A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and A SPAC.
Diversification Opportunities for SentinelOne and A SPAC
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and ASCB is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and A SPAC II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC II 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 A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC II has no effect on the direction of SentinelOne i.e., SentinelOne and A SPAC go up and down completely randomly.
Pair Corralation between SentinelOne and A SPAC
Taking into account the 90-day investment horizon SentinelOne is expected to generate 31.98 times more return on investment than A SPAC. However, SentinelOne is 31.98 times more volatile than A SPAC II. It trades about 0.27 of its potential returns per unit of risk. A SPAC II is currently generating about 0.22 per unit of risk. If you would invest 2,233 in SentinelOne on November 18, 2024 and sell it today you would earn a total of 247.00 from holding SentinelOne or generate 11.06% 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. A SPAC II
Performance |
| Timeline |
| SentinelOne |
| A SPAC II |
SentinelOne and A SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and A SPAC
The main advantage of trading using opposite SentinelOne and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, A SPAC 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 A SPAC will offset losses from the drop in A SPAC's long position.| SentinelOne vs. Alarum Technologies | SentinelOne vs. Arqit Quantum | SentinelOne vs. Nutanix | SentinelOne vs. Palo Alto Networks |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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