Correlation Between SentinelOne and FIH Mobile
Can any of the company-specific risk be diversified away by investing in both SentinelOne and FIH Mobile 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 FIH Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and FIH Mobile Limited, you can compare the effects of market volatilities on SentinelOne and FIH Mobile 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 FIH Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and FIH Mobile.
Diversification Opportunities for SentinelOne and FIH Mobile
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and FIH is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and FIH Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH Mobile Limited 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 FIH Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIH Mobile Limited has no effect on the direction of SentinelOne i.e., SentinelOne and FIH Mobile go up and down completely randomly.
Pair Corralation between SentinelOne and FIH Mobile
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.49 times more return on investment than FIH Mobile. However, SentinelOne is 2.03 times less risky than FIH Mobile. It trades about 0.15 of its potential returns per unit of risk. FIH Mobile Limited is currently generating about -0.05 per unit of risk. If you would invest 2,392 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 416.00 from holding SentinelOne or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
SentinelOne vs. FIH Mobile Limited
Performance |
| Timeline |
| SentinelOne |
| FIH Mobile Limited |
SentinelOne and FIH Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and FIH Mobile
The main advantage of trading using opposite SentinelOne and FIH Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, FIH Mobile 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 FIH Mobile will offset losses from the drop in FIH Mobile's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| FIH Mobile vs. WESTLAKE CHEMICAL | FIH Mobile vs. MARKET VECTR RETAIL | FIH Mobile vs. JIAHUA STORES | FIH Mobile vs. Westlake Chemical |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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