Correlation Between SentinelOne and ASM International
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ASM International 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 ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ASM International NV, you can compare the effects of market volatilities on SentinelOne and ASM International 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 ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ASM International.
Diversification Opportunities for SentinelOne and ASM International
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and ASM is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International 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 ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of SentinelOne i.e., SentinelOne and ASM International go up and down completely randomly.
Pair Corralation between SentinelOne and ASM International
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.03 times less return on investment than ASM International. But when comparing it to its historical volatility, SentinelOne is 2.54 times less risky than ASM International. It trades about 0.14 of its potential returns per unit of risk. ASM International NV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 57,978 in ASM International NV on November 5, 2024 and sell it today you would earn a total of 1,892 from holding ASM International NV or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. ASM International NV
Performance |
| Timeline |
| SentinelOne |
| ASM International |
SentinelOne and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ASM International
The main advantage of trading using opposite SentinelOne and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ASM International 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 ASM International will offset losses from the drop in ASM International's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| ASM International vs. Lasertec | ASM International vs. Tokyo Electron | ASM International vs. Tokyo Electron Ltd | ASM International vs. BE Semiconductor Industries |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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