Correlation Between SentinelOne and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both SentinelOne and DICKER DATA 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 DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and DICKER DATA LTD, you can compare the effects of market volatilities on SentinelOne and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and DICKER DATA.
Diversification Opportunities for SentinelOne and DICKER DATA
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and DICKER is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of SentinelOne i.e., SentinelOne and DICKER DATA go up and down completely randomly.
Pair Corralation between SentinelOne and DICKER DATA
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.34 times more return on investment than DICKER DATA. However, SentinelOne is 1.34 times more volatile than DICKER DATA LTD. It trades about 0.09 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about -0.11 per unit of risk. If you would invest 2,443 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 350.00 from holding SentinelOne or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. DICKER DATA LTD
Performance |
| Timeline |
| SentinelOne |
| DICKER DATA LTD |
SentinelOne and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and DICKER DATA
The main advantage of trading using opposite SentinelOne and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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