Correlation Between SentinelOne and Certara
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Certara 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 Certara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Certara, you can compare the effects of market volatilities on SentinelOne and Certara 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 Certara. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Certara.
Diversification Opportunities for SentinelOne and Certara
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Certara is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Certara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Certara 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 Certara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Certara has no effect on the direction of SentinelOne i.e., SentinelOne and Certara go up and down completely randomly.
Pair Corralation between SentinelOne and Certara
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.18 times more return on investment than Certara. However, SentinelOne is 1.18 times more volatile than Certara. It trades about 0.07 of its potential returns per unit of risk. Certara is currently generating about -0.04 per unit of risk. If you would invest 1,503 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 1,285 from holding SentinelOne or generate 85.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Certara
Performance |
| Timeline |
| SentinelOne |
| Certara |
SentinelOne and Certara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Certara
The main advantage of trading using opposite SentinelOne and Certara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Certara 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 Certara will offset losses from the drop in Certara's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Certara vs. HealthStream | Certara vs. National Research Corp | Certara vs. Forian Inc | Certara vs. HealthEquity |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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