Correlation Between SentinelOne and China Eastern
Can any of the company-specific risk be diversified away by investing in both SentinelOne and China Eastern 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 China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and China Eastern Airlines, you can compare the effects of market volatilities on SentinelOne and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and China Eastern.
Diversification Opportunities for SentinelOne and China Eastern
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and China is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of SentinelOne i.e., SentinelOne and China Eastern go up and down completely randomly.
Pair Corralation between SentinelOne and China Eastern
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.58 times more return on investment than China Eastern. However, SentinelOne is 1.73 times less risky than China Eastern. It trades about 0.15 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.07 per unit of risk. If you would invest 2,281 in SentinelOne on November 4, 2024 and sell it today you would earn a total of 114.00 from holding SentinelOne or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SentinelOne vs. China Eastern Airlines
Performance |
| Timeline |
| SentinelOne |
| China Eastern Airlines |
SentinelOne and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and China Eastern
The main advantage of trading using opposite SentinelOne and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| China Eastern vs. Dalata Hotel Group | China Eastern vs. MELIA HOTELS | China Eastern vs. NH HOTEL GROUP | China Eastern vs. HYATT HOTELS A |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |