Correlation Between SentinelOne and Camtek
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Camtek 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 Camtek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Camtek, you can compare the effects of market volatilities on SentinelOne and Camtek 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 Camtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Camtek.
Diversification Opportunities for SentinelOne and Camtek
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Camtek is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Camtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camtek 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 Camtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camtek has no effect on the direction of SentinelOne i.e., SentinelOne and Camtek go up and down completely randomly.
Pair Corralation between SentinelOne and Camtek
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.76 times less return on investment than Camtek. In addition to that, SentinelOne is 1.13 times more volatile than Camtek. It trades about 0.06 of its total potential returns per unit of risk. Camtek is currently generating about 0.11 per unit of volatility. If you would invest 778,844 in Camtek on August 28, 2024 and sell it today you would earn a total of 1,914,156 from holding Camtek or generate 245.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.82% |
| Values | Daily Returns |
SentinelOne vs. Camtek
Performance |
| Timeline |
| SentinelOne |
| Camtek |
SentinelOne and Camtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Camtek
The main advantage of trading using opposite SentinelOne and Camtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Camtek 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 Camtek will offset losses from the drop in Camtek's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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