Correlation Between SentinelOne and Eros Resources
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Eros Resources 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 Eros Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Eros Resources Corp, you can compare the effects of market volatilities on SentinelOne and Eros Resources 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 Eros Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Eros Resources.
Diversification Opportunities for SentinelOne and Eros Resources
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Eros is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Eros Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros Resources Corp 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 Eros Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros Resources Corp has no effect on the direction of SentinelOne i.e., SentinelOne and Eros Resources go up and down completely randomly.
Pair Corralation between SentinelOne and Eros Resources
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.4 times more return on investment than Eros Resources. However, SentinelOne is 2.51 times less risky than Eros Resources. It trades about 0.12 of its potential returns per unit of risk. Eros Resources Corp is currently generating about -0.12 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Eros Resources Corp
Performance |
| Timeline |
| SentinelOne |
| Eros Resources Corp |
SentinelOne and Eros Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Eros Resources
The main advantage of trading using opposite SentinelOne and Eros Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Eros Resources 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 Eros Resources will offset losses from the drop in Eros Resources' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Eros Resources vs. Solar Alliance Energy | Eros Resources vs. Global X Active | Eros Resources vs. Financial 15 Split | Eros Resources vs. Rubicon Organics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |