Correlation Between SentinelOne and Air Transport
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Air Transport 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 Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Air Transport Services, you can compare the effects of market volatilities on SentinelOne and Air Transport 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 Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Air Transport.
Diversification Opportunities for SentinelOne and Air Transport
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Air is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of SentinelOne i.e., SentinelOne and Air Transport go up and down completely randomly.
Pair Corralation between SentinelOne and Air Transport
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.49 times less return on investment than Air Transport. But when comparing it to its historical volatility, SentinelOne is 1.18 times less risky than Air Transport. It trades about 0.11 of its potential returns per unit of risk. Air Transport Services is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,190 in Air Transport Services on August 28, 2024 and sell it today you would earn a total of 890.00 from holding Air Transport Services or generate 74.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
SentinelOne vs. Air Transport Services
Performance |
| Timeline |
| SentinelOne |
| Air Transport Services |
SentinelOne and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Air Transport
The main advantage of trading using opposite SentinelOne and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Air Transport vs. GEAR4MUSIC LS 10 | Air Transport vs. Harmony Gold Mining | Air Transport vs. REVO INSURANCE SPA | Air Transport vs. Webster Financial |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |