Correlation Between SentinelOne and Athene Holding
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Athene Holding 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 Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Athene Holding, you can compare the effects of market volatilities on SentinelOne and Athene Holding 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 Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Athene Holding.
Diversification Opportunities for SentinelOne and Athene Holding
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Athene is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding 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 Athene Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athene Holding has no effect on the direction of SentinelOne i.e., SentinelOne and Athene Holding go up and down completely randomly.
Pair Corralation between SentinelOne and Athene Holding
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.89 times more return on investment than Athene Holding. However, SentinelOne is 1.89 times more volatile than Athene Holding. It trades about 0.13 of its potential returns per unit of risk. Athene Holding is currently generating about -0.02 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Athene Holding
Performance |
| Timeline |
| SentinelOne |
| Athene Holding |
SentinelOne and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Athene Holding
The main advantage of trading using opposite SentinelOne and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Athene Holding 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 Athene Holding will offset losses from the drop in Athene Holding's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Equitable Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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