Correlation Between SentinelOne and Baytex Energy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Baytex Energy 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 Baytex Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Baytex Energy Corp, you can compare the effects of market volatilities on SentinelOne and Baytex Energy 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 Baytex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Baytex Energy.
Diversification Opportunities for SentinelOne and Baytex Energy
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Baytex is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Baytex Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baytex Energy Corp 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 Baytex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baytex Energy Corp has no effect on the direction of SentinelOne i.e., SentinelOne and Baytex Energy go up and down completely randomly.
Pair Corralation between SentinelOne and Baytex Energy
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.19 times more return on investment than Baytex Energy. However, SentinelOne is 1.19 times more volatile than Baytex Energy Corp. It trades about 0.02 of its potential returns per unit of risk. Baytex Energy Corp is currently generating about -0.01 per unit of risk. If you would invest 2,850 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 4.00 from holding SentinelOne or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
SentinelOne vs. Baytex Energy Corp
Performance |
| Timeline |
| SentinelOne |
| Baytex Energy Corp |
SentinelOne and Baytex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Baytex Energy
The main advantage of trading using opposite SentinelOne and Baytex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Baytex Energy 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 Baytex Energy will offset losses from the drop in Baytex Energy's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Baytex Energy vs. MEG Energy Corp | Baytex Energy vs. Whitecap Resources | Baytex Energy vs. Athabasca Oil Corp | Baytex Energy vs. Cenovus Energy |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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