Correlation Between SentinelOne and BioCryst Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both SentinelOne and BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and BioCryst Pharmaceuticals, you can compare the effects of market volatilities on SentinelOne and BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and BioCryst Pharmaceuticals.
Diversification Opportunities for SentinelOne and BioCryst Pharmaceuticals
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and BioCryst is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and BioCryst Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCryst Pharmaceuticals has no effect on the direction of SentinelOne i.e., SentinelOne and BioCryst Pharmaceuticals go up and down completely randomly.
Pair Corralation between SentinelOne and BioCryst Pharmaceuticals
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.97 times more return on investment than BioCryst Pharmaceuticals. However, SentinelOne is 1.03 times less risky than BioCryst Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. BioCryst Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 1,524 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,284 from holding SentinelOne or generate 84.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. BioCryst Pharmaceuticals
Performance |
| Timeline |
| SentinelOne |
| BioCryst Pharmaceuticals |
SentinelOne and BioCryst Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and BioCryst Pharmaceuticals
The main advantage of trading using opposite SentinelOne and BioCryst Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals will offset losses from the drop in BioCryst Pharmaceuticals' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| BioCryst Pharmaceuticals vs. TG Therapeutics | BioCryst Pharmaceuticals vs. Axsome Therapeutics | BioCryst Pharmaceuticals vs. Seres Therapeutics | BioCryst Pharmaceuticals vs. Madrigal Pharmaceuticals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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