Correlation Between SentinelOne and Blade Air
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Blade Air 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 Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Blade Air Mobility, you can compare the effects of market volatilities on SentinelOne and Blade Air 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 Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Blade Air.
Diversification Opportunities for SentinelOne and Blade Air
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Blade is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Blade Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blade Air Mobility 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 Blade Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blade Air Mobility has no effect on the direction of SentinelOne i.e., SentinelOne and Blade Air go up and down completely randomly.
Pair Corralation between SentinelOne and Blade Air
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.83 times more return on investment than Blade Air. However, SentinelOne is 1.21 times less risky than Blade Air. It trades about 0.06 of its potential returns per unit of risk. Blade Air Mobility is currently generating about 0.01 per unit of risk. If you would invest 1,410 in SentinelOne on August 27, 2024 and sell it today you would earn a total of 1,444 from holding SentinelOne or generate 102.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Blade Air Mobility
Performance |
| Timeline |
| SentinelOne |
| Blade Air Mobility |
SentinelOne and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Blade Air
The main advantage of trading using opposite SentinelOne and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Blade Air 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 Blade Air will offset losses from the drop in Blade Air's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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