Correlation Between SentinelOne and Bayer AG
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Bayer AG 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 Bayer AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Bayer AG PK, you can compare the effects of market volatilities on SentinelOne and Bayer AG 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 Bayer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Bayer AG.
Diversification Opportunities for SentinelOne and Bayer AG
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and Bayer is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Bayer AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayer AG PK 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 Bayer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayer AG PK has no effect on the direction of SentinelOne i.e., SentinelOne and Bayer AG go up and down completely randomly.
Pair Corralation between SentinelOne and Bayer AG
If you would invest 1,742 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 1,066 from holding SentinelOne or generate 61.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.25% |
Values | Daily Returns |
SentinelOne vs. Bayer AG PK
Performance |
Timeline |
SentinelOne |
Bayer AG PK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and Bayer AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and Bayer AG
The main advantage of trading using opposite SentinelOne and Bayer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Bayer AG 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 Bayer AG will offset losses from the drop in Bayer AG's long position.SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
Bayer AG vs. Novartis AG ADR | Bayer AG vs. Sanofi ADR | Bayer AG vs. AstraZeneca PLC ADR | Bayer AG vs. GlaxoSmithKline PLC ADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |