Correlation Between SentinelOne and CH Karnchang
Can any of the company-specific risk be diversified away by investing in both SentinelOne and CH Karnchang 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 CH Karnchang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and CH Karnchang Public, you can compare the effects of market volatilities on SentinelOne and CH Karnchang 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 CH Karnchang. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and CH Karnchang.
Diversification Opportunities for SentinelOne and CH Karnchang
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and CH Karnchang is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CH Karnchang Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Karnchang Public 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 CH Karnchang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Karnchang Public has no effect on the direction of SentinelOne i.e., SentinelOne and CH Karnchang go up and down completely randomly.
Pair Corralation between SentinelOne and CH Karnchang
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.51 times more return on investment than CH Karnchang. However, SentinelOne is 1.51 times more volatile than CH Karnchang Public. It trades about 0.1 of its potential returns per unit of risk. CH Karnchang Public is currently generating about -0.02 per unit of risk. If you would invest 2,489 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 365.00 from holding SentinelOne or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
SentinelOne vs. CH Karnchang Public
Performance |
| Timeline |
| SentinelOne |
| CH Karnchang Public |
SentinelOne and CH Karnchang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and CH Karnchang
The main advantage of trading using opposite SentinelOne and CH Karnchang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, CH Karnchang 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 CH Karnchang will offset losses from the drop in CH Karnchang's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| CH Karnchang vs. Italian Thai Development Public | CH Karnchang vs. Charoen Pokphand Foods | CH Karnchang vs. Land and Houses | CH Karnchang vs. Bangkok Bank Public |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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