Correlation Between SentinelOne and Carlsberg
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Carlsberg 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 Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Carlsberg AS, you can compare the effects of market volatilities on SentinelOne and Carlsberg 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 Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Carlsberg.
Diversification Opportunities for SentinelOne and Carlsberg
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and Carlsberg is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS 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 Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of SentinelOne i.e., SentinelOne and Carlsberg go up and down completely randomly.
Pair Corralation between SentinelOne and Carlsberg
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Carlsberg. In addition to that, SentinelOne is 2.2 times more volatile than Carlsberg AS. It trades about -0.2 of its total potential returns per unit of risk. Carlsberg AS is currently generating about 0.05 per unit of volatility. If you would invest 87,880 in Carlsberg AS on January 22, 2025 and sell it today you would earn a total of 1,360 from holding Carlsberg AS or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
SentinelOne vs. Carlsberg AS
Performance |
| Timeline |
| SentinelOne |
| Carlsberg AS |
SentinelOne and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Carlsberg
The main advantage of trading using opposite SentinelOne and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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