Correlation Between SentinelOne and Healixa
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Healixa 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 Healixa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Healixa, you can compare the effects of market volatilities on SentinelOne and Healixa 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 Healixa. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Healixa.
Diversification Opportunities for SentinelOne and Healixa
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Healixa is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Healixa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healixa 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 Healixa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healixa has no effect on the direction of SentinelOne i.e., SentinelOne and Healixa go up and down completely randomly.
Pair Corralation between SentinelOne and Healixa
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.02 times less return on investment than Healixa. But when comparing it to its historical volatility, SentinelOne is 3.69 times less risky than Healixa. It trades about 0.07 of its potential returns per unit of risk. Healixa is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Healixa on August 31, 2024 and sell it today you would lose (26.00) from holding Healixa or give up 81.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
SentinelOne vs. Healixa
Performance |
| Timeline |
| SentinelOne |
| Healixa |
SentinelOne and Healixa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Healixa
The main advantage of trading using opposite SentinelOne and Healixa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Healixa 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 Healixa will offset losses from the drop in Healixa's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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