Correlation Between SentinelOne and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Astronics Corp 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 Astronics Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Astronics Corp Cl, you can compare the effects of market volatilities on SentinelOne and Astronics Corp 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 Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Astronics Corp.
Diversification Opportunities for SentinelOne and Astronics Corp
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Astronics is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Astronics Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics Corp Cl 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 Astronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics Corp Cl has no effect on the direction of SentinelOne i.e., SentinelOne and Astronics Corp go up and down completely randomly.
Pair Corralation between SentinelOne and Astronics Corp
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.68 times more return on investment than Astronics Corp. However, SentinelOne is 1.47 times less risky than Astronics Corp. It trades about 0.06 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.02 per unit of risk. If you would invest 1,789 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,019 from holding SentinelOne or generate 56.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
SentinelOne vs. Astronics Corp Cl
Performance |
| Timeline |
| SentinelOne |
| Astronics Corp Cl |
SentinelOne and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Astronics Corp
The main advantage of trading using opposite SentinelOne and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Astronics Corp 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 Astronics Corp will offset losses from the drop in Astronics Corp's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Astronics Corp vs. Firan Technology Group | Astronics Corp vs. 808 Renewable Energy | Astronics Corp vs. Park Electrochemical | Astronics Corp vs. Innovative Solutions and |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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