Correlation Between SentinelOne and BitFrontier Capital
Can any of the company-specific risk be diversified away by investing in both SentinelOne and BitFrontier Capital 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 BitFrontier Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and BitFrontier Capital Holdings, you can compare the effects of market volatilities on SentinelOne and BitFrontier Capital 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 BitFrontier Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and BitFrontier Capital.
Diversification Opportunities for SentinelOne and BitFrontier Capital
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and BitFrontier is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and BitFrontier Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFrontier Capital 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 BitFrontier Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFrontier Capital has no effect on the direction of SentinelOne i.e., SentinelOne and BitFrontier Capital go up and down completely randomly.
Pair Corralation between SentinelOne and BitFrontier Capital
Taking into account the 90-day investment horizon SentinelOne is expected to generate 8.5 times less return on investment than BitFrontier Capital. But when comparing it to its historical volatility, SentinelOne is 6.43 times less risky than BitFrontier Capital. It trades about 0.17 of its potential returns per unit of risk. BitFrontier Capital Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.18 in BitFrontier Capital Holdings on September 1, 2024 and sell it today you would earn a total of 0.10 from holding BitFrontier Capital Holdings or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. BitFrontier Capital Holdings
Performance |
| Timeline |
| SentinelOne |
| BitFrontier Capital |
SentinelOne and BitFrontier Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and BitFrontier Capital
The main advantage of trading using opposite SentinelOne and BitFrontier Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, BitFrontier Capital 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 BitFrontier Capital will offset losses from the drop in BitFrontier Capital's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| BitFrontier Capital vs. XTRA Bitcoin | BitFrontier Capital vs. Coin Citadel | BitFrontier Capital vs. Dmg Blockchain Solutions | BitFrontier Capital vs. Argo Blockchain PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |