Correlation Between SentinelOne and Concentric
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Concentric 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 Concentric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Concentric AB, you can compare the effects of market volatilities on SentinelOne and Concentric 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 Concentric. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Concentric.
Diversification Opportunities for SentinelOne and Concentric
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Concentric is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Concentric AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentric AB 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 Concentric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentric AB has no effect on the direction of SentinelOne i.e., SentinelOne and Concentric go up and down completely randomly.
Pair Corralation between SentinelOne and Concentric
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.45 times more return on investment than Concentric. However, SentinelOne is 5.45 times more volatile than Concentric AB. It trades about 0.12 of its potential returns per unit of risk. Concentric AB is currently generating about 0.06 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 36.36% |
| Values | Daily Returns |
SentinelOne vs. Concentric AB
Performance |
| Timeline |
| SentinelOne |
| Concentric AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and Concentric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Concentric
The main advantage of trading using opposite SentinelOne and Concentric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Concentric 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 Concentric will offset losses from the drop in Concentric's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Concentric vs. Inwido AB | Concentric vs. Bufab Holding AB | Concentric vs. Beijer Alma AB | Concentric vs. Lindab International AB |
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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