Correlation Between SentinelOne and Eco Tek
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Eco Tek 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 Eco Tek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Eco Tek Group, you can compare the effects of market volatilities on SentinelOne and Eco Tek 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 Eco Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Eco Tek.
Diversification Opportunities for SentinelOne and Eco Tek
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Eco is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Eco Tek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eco Tek Group 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 Eco Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eco Tek Group has no effect on the direction of SentinelOne i.e., SentinelOne and Eco Tek go up and down completely randomly.
Pair Corralation between SentinelOne and Eco Tek
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.13 times more return on investment than Eco Tek. However, SentinelOne is 7.79 times less risky than Eco Tek. It trades about 0.04 of its potential returns per unit of risk. Eco Tek Group is currently generating about -0.02 per unit of risk. If you would invest 2,273 in SentinelOne on November 22, 2024 and sell it today you would earn a total of 37.00 from holding SentinelOne or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Eco Tek Group
Performance |
| Timeline |
| SentinelOne |
| Eco Tek Group |
SentinelOne and Eco Tek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Eco Tek
The main advantage of trading using opposite SentinelOne and Eco Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Eco Tek 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 Eco Tek will offset losses from the drop in Eco Tek's long position.| SentinelOne vs. Alarum Technologies | SentinelOne vs. Arqit Quantum | SentinelOne vs. Nutanix | SentinelOne vs. Palo Alto Networks |
| Eco Tek vs. IFAN Financial | Eco Tek vs. First Colombia Gold | Eco Tek vs. Eline Entertainment Group | Eco Tek vs. All American Gld |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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