Correlation Between SentinelOne and Aselsan Elektronik
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Aselsan Elektronik 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 Aselsan Elektronik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Aselsan Elektronik Sanayi, you can compare the effects of market volatilities on SentinelOne and Aselsan Elektronik 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 Aselsan Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Aselsan Elektronik.
Diversification Opportunities for SentinelOne and Aselsan Elektronik
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Aselsan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aselsan Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aselsan Elektronik Sanayi 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 Aselsan Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aselsan Elektronik Sanayi has no effect on the direction of SentinelOne i.e., SentinelOne and Aselsan Elektronik go up and down completely randomly.
Pair Corralation between SentinelOne and Aselsan Elektronik
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.04 times less return on investment than Aselsan Elektronik. In addition to that, SentinelOne is 1.33 times more volatile than Aselsan Elektronik Sanayi. It trades about 0.13 of its total potential returns per unit of risk. Aselsan Elektronik Sanayi is currently generating about 0.37 per unit of volatility. If you would invest 6,010 in Aselsan Elektronik Sanayi on August 28, 2024 and sell it today you would earn a total of 890.00 from holding Aselsan Elektronik Sanayi or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SentinelOne vs. Aselsan Elektronik Sanayi
Performance |
| Timeline |
| SentinelOne |
| Aselsan Elektronik Sanayi |
SentinelOne and Aselsan Elektronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Aselsan Elektronik
The main advantage of trading using opposite SentinelOne and Aselsan Elektronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Aselsan Elektronik 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 Aselsan Elektronik will offset losses from the drop in Aselsan Elektronik's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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