Correlation Between SentinelOne and Energisa
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Energisa 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 Energisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Energisa SA, you can compare the effects of market volatilities on SentinelOne and Energisa 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 Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Energisa.
Diversification Opportunities for SentinelOne and Energisa
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and Energisa is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA 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 Energisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energisa SA has no effect on the direction of SentinelOne i.e., SentinelOne and Energisa go up and down completely randomly.
Pair Corralation between SentinelOne and Energisa
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.22 times more return on investment than Energisa. However, SentinelOne is 1.22 times more volatile than Energisa SA. It trades about 0.12 of its potential returns per unit of risk. Energisa SA is currently generating about -0.13 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 | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
SentinelOne vs. Energisa SA
Performance |
| Timeline |
| SentinelOne |
| Energisa SA |
SentinelOne and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Energisa
The main advantage of trading using opposite SentinelOne and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Energisa 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 Energisa will offset losses from the drop in Energisa's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Energisa vs. Energisa SA | Energisa vs. Energisa SA | Energisa vs. Companhia Energtica de | Energisa vs. Empresa Metropolitana de |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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