Correlation Between SentinelOne and UBS AG
Can any of the company-specific risk be diversified away by investing in both SentinelOne and UBS AG 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 UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and UBS AG London, you can compare the effects of market volatilities on SentinelOne and UBS AG 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 UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and UBS AG.
Diversification Opportunities for SentinelOne and UBS AG
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and UBS is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London 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 UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of SentinelOne i.e., SentinelOne and UBS AG go up and down completely randomly.
Pair Corralation between SentinelOne and UBS AG
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.25 times more return on investment than UBS AG. However, SentinelOne is 1.25 times more volatile than UBS AG London. It trades about 0.16 of its potential returns per unit of risk. UBS AG London is currently generating about 0.11 per unit of risk. If you would invest 1,722 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,073 from holding SentinelOne or generate 62.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
SentinelOne vs. UBS AG London
Performance |
| Timeline |
| SentinelOne |
| UBS AG London |
SentinelOne and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and UBS AG
The main advantage of trading using opposite SentinelOne and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, UBS AG 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 UBS AG will offset losses from the drop in UBS AG's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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