Correlation Between SentinelOne and Canaan
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Canaan 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 Canaan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Canaan Inc, you can compare the effects of market volatilities on SentinelOne and Canaan 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 Canaan. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Canaan.
Diversification Opportunities for SentinelOne and Canaan
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Canaan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Canaan Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaan Inc 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 Canaan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaan Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Canaan go up and down completely randomly.
Pair Corralation between SentinelOne and Canaan
Taking into account the 90-day investment horizon SentinelOne is expected to generate 6.57 times less return on investment than Canaan. But when comparing it to its historical volatility, SentinelOne is 4.81 times less risky than Canaan. It trades about 0.12 of its potential returns per unit of risk. Canaan Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Canaan Inc on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Canaan Inc or generate 33.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Canaan Inc
Performance |
| Timeline |
| SentinelOne |
| Canaan Inc |
SentinelOne and Canaan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Canaan
The main advantage of trading using opposite SentinelOne and Canaan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Canaan 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 Canaan will offset losses from the drop in Canaan's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |