Correlation Between SentinelOne and CMC Investment
Can any of the company-specific risk be diversified away by investing in both SentinelOne and CMC Investment 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 CMC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and CMC Investment JSC, you can compare the effects of market volatilities on SentinelOne and CMC Investment 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 CMC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and CMC Investment.
Diversification Opportunities for SentinelOne and CMC Investment
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and CMC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CMC Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMC Investment JSC 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 CMC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMC Investment JSC has no effect on the direction of SentinelOne i.e., SentinelOne and CMC Investment go up and down completely randomly.
Pair Corralation between SentinelOne and CMC Investment
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.58 times more return on investment than CMC Investment. However, SentinelOne is 1.74 times less risky than CMC Investment. It trades about 0.03 of its potential returns per unit of risk. CMC Investment JSC is currently generating about 0.01 per unit of risk. If you would invest 2,550 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 245.00 from holding SentinelOne or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 66.49% |
| Values | Daily Returns |
SentinelOne vs. CMC Investment JSC
Performance |
| Timeline |
| SentinelOne |
| CMC Investment JSC |
SentinelOne and CMC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and CMC Investment
The main advantage of trading using opposite SentinelOne and CMC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, CMC Investment 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 CMC Investment will offset losses from the drop in CMC Investment's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| CMC Investment vs. FIT INVEST JSC | CMC Investment vs. Damsan JSC | CMC Investment vs. An Phat Plastic | CMC Investment vs. Alphanam ME |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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