Correlation Between SentinelOne and Barnes Noble
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Barnes Noble 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 Barnes Noble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Barnes Noble Education, you can compare the effects of market volatilities on SentinelOne and Barnes Noble 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 Barnes Noble. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Barnes Noble.
Diversification Opportunities for SentinelOne and Barnes Noble
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Barnes is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Barnes Noble Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Noble Education 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 Barnes Noble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Noble Education has no effect on the direction of SentinelOne i.e., SentinelOne and Barnes Noble go up and down completely randomly.
Pair Corralation between SentinelOne and Barnes Noble
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.03 times less return on investment than Barnes Noble. But when comparing it to its historical volatility, SentinelOne is 3.02 times less risky than Barnes Noble. It trades about 0.13 of its potential returns per unit of risk. Barnes Noble Education is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,017 in Barnes Noble Education on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Barnes Noble Education or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Barnes Noble Education
Performance |
| Timeline |
| SentinelOne |
| Barnes Noble Education |
SentinelOne and Barnes Noble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Barnes Noble
The main advantage of trading using opposite SentinelOne and Barnes Noble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Barnes Noble 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 Barnes Noble will offset losses from the drop in Barnes Noble'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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