Correlation Between SentinelOne and Binance Coin
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Binance Coin 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 Binance Coin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Binance Coin, you can compare the effects of market volatilities on SentinelOne and Binance Coin 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 Binance Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Binance Coin.
Diversification Opportunities for SentinelOne and Binance Coin
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and Binance is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Binance Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binance Coin 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 Binance Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binance Coin has no effect on the direction of SentinelOne i.e., SentinelOne and Binance Coin go up and down completely randomly.
Pair Corralation between SentinelOne and Binance Coin
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Binance Coin. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.76 times less risky than Binance Coin. The stock trades about -0.18 of its potential returns per unit of risk. The Binance Coin is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 66,088 in Binance Coin on November 28, 2024 and sell it today you would lose (4,978) from holding Binance Coin or give up 7.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. Binance Coin
Performance |
| Timeline |
| SentinelOne |
| Binance Coin |
SentinelOne and Binance Coin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Binance Coin
The main advantage of trading using opposite SentinelOne and Binance Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Binance Coin 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 Binance Coin will offset losses from the drop in Binance Coin's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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