Correlation Between SentinelOne and Basic Fit
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Basic Fit 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 Basic Fit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Basic Fit NV, you can compare the effects of market volatilities on SentinelOne and Basic Fit 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 Basic Fit. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Basic Fit.
Diversification Opportunities for SentinelOne and Basic Fit
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and Basic is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Basic Fit NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basic Fit NV 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 Basic Fit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basic Fit NV has no effect on the direction of SentinelOne i.e., SentinelOne and Basic Fit go up and down completely randomly.
Pair Corralation between SentinelOne and Basic Fit
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.45 times more return on investment than Basic Fit. However, SentinelOne is 1.45 times more volatile than Basic Fit NV. It trades about 0.1 of its potential returns per unit of risk. Basic Fit NV is currently generating about -0.01 per unit of risk. If you would invest 2,090 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 764.00 from holding SentinelOne or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.95% |
| Values | Daily Returns |
SentinelOne vs. Basic Fit NV
Performance |
| Timeline |
| SentinelOne |
| Basic Fit NV |
SentinelOne and Basic Fit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Basic Fit
The main advantage of trading using opposite SentinelOne and Basic Fit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Basic Fit 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 Basic Fit will offset losses from the drop in Basic Fit's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Basic Fit vs. Sligro Food Group | Basic Fit vs. Amsterdam Commodities NV | Basic Fit vs. Brunel International NV | Basic Fit vs. Van Lanschot NV |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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