Correlation Between SentinelOne and Fast Ejendom
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Fast Ejendom 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 Fast Ejendom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Fast Ejendom, you can compare the effects of market volatilities on SentinelOne and Fast Ejendom 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 Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Fast Ejendom.
Diversification Opportunities for SentinelOne and Fast Ejendom
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Fast is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom 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 Fast Ejendom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Ejendom has no effect on the direction of SentinelOne i.e., SentinelOne and Fast Ejendom go up and down completely randomly.
Pair Corralation between SentinelOne and Fast Ejendom
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.95 times more return on investment than Fast Ejendom. However, SentinelOne is 1.95 times more volatile than Fast Ejendom. It trades about 0.06 of its potential returns per unit of risk. Fast Ejendom is currently generating about 0.01 per unit of risk. If you would invest 1,425 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 1,429 from holding SentinelOne or generate 100.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SentinelOne vs. Fast Ejendom
Performance |
| Timeline |
| SentinelOne |
| Fast Ejendom |
SentinelOne and Fast Ejendom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Fast Ejendom
The main advantage of trading using opposite SentinelOne and Fast Ejendom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Fast Ejendom 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 Fast Ejendom will offset losses from the drop in Fast Ejendom's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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