Correlation Between SentinelOne and DBV Technologies
Can any of the company-specific risk be diversified away by investing in both SentinelOne and DBV Technologies 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 DBV Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and DBV Technologies SA, you can compare the effects of market volatilities on SentinelOne and DBV Technologies 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 DBV Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and DBV Technologies.
Diversification Opportunities for SentinelOne and DBV Technologies
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and DBV is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and DBV Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies 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 DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of SentinelOne i.e., SentinelOne and DBV Technologies go up and down completely randomly.
Pair Corralation between SentinelOne and DBV Technologies
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.52 times more return on investment than DBV Technologies. However, SentinelOne is 1.93 times less risky than DBV Technologies. It trades about 0.12 of its potential returns per unit of risk. DBV Technologies SA is currently generating about -0.18 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. DBV Technologies SA
Performance |
| Timeline |
| SentinelOne |
| DBV Technologies |
SentinelOne and DBV Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and DBV Technologies
The main advantage of trading using opposite SentinelOne and DBV Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, DBV Technologies 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 DBV Technologies will offset losses from the drop in DBV Technologies' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| DBV Technologies vs. Genfit | DBV Technologies vs. Innate Pharma | DBV Technologies vs. Cellectis | DBV Technologies vs. Nanobiotix SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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