Correlation Between SentinelOne and EGF Theramed
Can any of the company-specific risk be diversified away by investing in both SentinelOne and EGF Theramed 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 EGF Theramed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and EGF Theramed Health, you can compare the effects of market volatilities on SentinelOne and EGF Theramed 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 EGF Theramed. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and EGF Theramed.
Diversification Opportunities for SentinelOne and EGF Theramed
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and EGF is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and EGF Theramed Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGF Theramed Health 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 EGF Theramed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGF Theramed Health has no effect on the direction of SentinelOne i.e., SentinelOne and EGF Theramed go up and down completely randomly.
Pair Corralation between SentinelOne and EGF Theramed
Taking into account the 90-day investment horizon SentinelOne is expected to generate 10.8 times less return on investment than EGF Theramed. But when comparing it to its historical volatility, SentinelOne is 8.86 times less risky than EGF Theramed. It trades about 0.05 of its potential returns per unit of risk. EGF Theramed Health is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 36.00 in EGF Theramed Health on August 30, 2024 and sell it today you would lose (15.00) from holding EGF Theramed Health or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. EGF Theramed Health
Performance |
| Timeline |
| SentinelOne |
| EGF Theramed Health |
SentinelOne and EGF Theramed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and EGF Theramed
The main advantage of trading using opposite SentinelOne and EGF Theramed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, EGF Theramed 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 EGF Theramed will offset losses from the drop in EGF Theramed's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| EGF Theramed vs. Reliq Health Technologies | EGF Theramed vs. Healthcare Triangle | EGF Theramed vs. Bullfrog AI Holdings, | EGF Theramed vs. Mednow Inc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |