Correlation Between SentinelOne and Actelis Networks
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Actelis Networks 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 Actelis Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Actelis Networks, you can compare the effects of market volatilities on SentinelOne and Actelis Networks 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 Actelis Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Actelis Networks.
Diversification Opportunities for SentinelOne and Actelis Networks
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Actelis is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks 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 Actelis Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actelis Networks has no effect on the direction of SentinelOne i.e., SentinelOne and Actelis Networks go up and down completely randomly.
Pair Corralation between SentinelOne and Actelis Networks
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.86 times more return on investment than Actelis Networks. However, SentinelOne is 1.17 times less risky than Actelis Networks. It trades about 0.13 of its potential returns per unit of risk. Actelis Networks is currently generating about -0.06 per unit of risk. If you would invest 2,609 in SentinelOne on August 27, 2024 and sell it today you would earn a total of 179.00 from holding SentinelOne or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Actelis Networks
Performance |
| Timeline |
| SentinelOne |
| Actelis Networks |
SentinelOne and Actelis Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Actelis Networks
The main advantage of trading using opposite SentinelOne and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Actelis Networks 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 Actelis Networks will offset losses from the drop in Actelis Networks' 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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