Correlation Between SentinelOne and EasyJet PLC
Can any of the company-specific risk be diversified away by investing in both SentinelOne and EasyJet PLC 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 EasyJet PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and EasyJet PLC, you can compare the effects of market volatilities on SentinelOne and EasyJet PLC 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 EasyJet PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and EasyJet PLC.
Diversification Opportunities for SentinelOne and EasyJet PLC
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and EasyJet is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and EasyJet PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EasyJet PLC 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 EasyJet PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EasyJet PLC has no effect on the direction of SentinelOne i.e., SentinelOne and EasyJet PLC go up and down completely randomly.
Pair Corralation between SentinelOne and EasyJet PLC
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.69 times more return on investment than EasyJet PLC. However, SentinelOne is 1.45 times less risky than EasyJet PLC. It trades about 0.14 of its potential returns per unit of risk. EasyJet PLC is currently generating about -0.39 per unit of risk. If you would invest 2,246 in SentinelOne on October 29, 2024 and sell it today you would earn a total of 70.00 from holding SentinelOne or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
SentinelOne vs. EasyJet PLC
Performance |
| Timeline |
| SentinelOne |
| EasyJet PLC |
SentinelOne and EasyJet PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and EasyJet PLC
The main advantage of trading using opposite SentinelOne and EasyJet PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, EasyJet PLC 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 EasyJet PLC will offset losses from the drop in EasyJet PLC's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. BLOCK INC | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings |
| EasyJet PLC vs. National Beverage Corp | EasyJet PLC vs. Aptitude Software Group | EasyJet PLC vs. Symphony Environmental Technologies | EasyJet PLC vs. Molson Coors Beverage |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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