Correlation Between SentinelOne and Endur ASA
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Endur ASA 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 Endur ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Endur ASA, you can compare the effects of market volatilities on SentinelOne and Endur ASA 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 Endur ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Endur ASA.
Diversification Opportunities for SentinelOne and Endur ASA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and Endur is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Endur ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endur ASA 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 Endur ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endur ASA has no effect on the direction of SentinelOne i.e., SentinelOne and Endur ASA go up and down completely randomly.
Pair Corralation between SentinelOne and Endur ASA
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.48 times more return on investment than Endur ASA. However, SentinelOne is 2.48 times more volatile than Endur ASA. It trades about 0.13 of its potential returns per unit of risk. Endur ASA is currently generating about 0.28 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Endur ASA
Performance |
| Timeline |
| SentinelOne |
| Endur ASA |
SentinelOne and Endur ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Endur ASA
The main advantage of trading using opposite SentinelOne and Endur ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Endur ASA 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 Endur ASA will offset losses from the drop in Endur ASA's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Endur ASA vs. Magnora ASA | Endur ASA vs. Next Biometrics Group | Endur ASA vs. Idex ASA | Endur ASA vs. Eidesvik Offshore ASA |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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