Correlation Between SentinelOne and Lyxor CAC
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lyxor CAC 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 Lyxor CAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lyxor CAC 40, you can compare the effects of market volatilities on SentinelOne and Lyxor CAC 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 Lyxor CAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lyxor CAC.
Diversification Opportunities for SentinelOne and Lyxor CAC
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Lyxor is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lyxor CAC 40 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor CAC 40 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 Lyxor CAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor CAC 40 has no effect on the direction of SentinelOne i.e., SentinelOne and Lyxor CAC go up and down completely randomly.
Pair Corralation between SentinelOne and Lyxor CAC
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.73 times more return on investment than Lyxor CAC. However, SentinelOne is 2.73 times more volatile than Lyxor CAC 40. It trades about 0.11 of its potential returns per unit of risk. Lyxor CAC 40 is currently generating about -0.21 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lyxor CAC 40
Performance |
| Timeline |
| SentinelOne |
| Lyxor CAC 40 |
SentinelOne and Lyxor CAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lyxor CAC
The main advantage of trading using opposite SentinelOne and Lyxor CAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lyxor CAC 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 Lyxor CAC will offset losses from the drop in Lyxor CAC's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Lyxor CAC vs. Manitou BF SA | Lyxor CAC vs. Ossiam Minimum Variance | Lyxor CAC vs. Ekinops SA | Lyxor CAC vs. Orapi SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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