Correlation Between SentinelOne and Eastern Star
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Eastern Star 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 Eastern Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Eastern Star Real, you can compare the effects of market volatilities on SentinelOne and Eastern Star 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 Eastern Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Eastern Star.
Diversification Opportunities for SentinelOne and Eastern Star
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Eastern is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Eastern Star Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Star Real 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 Eastern Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Star Real has no effect on the direction of SentinelOne i.e., SentinelOne and Eastern Star go up and down completely randomly.
Pair Corralation between SentinelOne and Eastern Star
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.19 times more return on investment than Eastern Star. However, SentinelOne is 1.19 times more volatile than Eastern Star Real. It trades about 0.13 of its potential returns per unit of risk. Eastern Star Real is currently generating about -0.09 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 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 | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Eastern Star Real
Performance |
| Timeline |
| SentinelOne |
| Eastern Star Real |
SentinelOne and Eastern Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Eastern Star
The main advantage of trading using opposite SentinelOne and Eastern Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Eastern Star 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 Eastern Star will offset losses from the drop in Eastern Star's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Eastern Star vs. Bangkok Land Public | Eastern Star vs. Everland Public | Eastern Star vs. Amata Public | Eastern Star vs. Chonburi Concrete Product |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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