Correlation Between SentinelOne and Golden Agri-Resources
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Golden Agri-Resources 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 Golden Agri-Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Golden Agri Resources, you can compare the effects of market volatilities on SentinelOne and Golden Agri-Resources 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 Golden Agri-Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Golden Agri-Resources.
Diversification Opportunities for SentinelOne and Golden Agri-Resources
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Golden is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Golden Agri Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Agri Resources 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 Golden Agri-Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Agri Resources has no effect on the direction of SentinelOne i.e., SentinelOne and Golden Agri-Resources go up and down completely randomly.
Pair Corralation between SentinelOne and Golden Agri-Resources
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.88 times more return on investment than Golden Agri-Resources. However, SentinelOne is 1.88 times more volatile than Golden Agri Resources. It trades about 0.11 of its potential returns per unit of risk. Golden Agri Resources is currently generating about -0.21 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 148.00 from holding SentinelOne or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. Golden Agri Resources
Performance |
| Timeline |
| SentinelOne |
| Golden Agri Resources |
SentinelOne and Golden Agri-Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Golden Agri-Resources
The main advantage of trading using opposite SentinelOne and Golden Agri-Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Golden Agri-Resources 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 Golden Agri-Resources will offset losses from the drop in Golden Agri-Resources' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Golden Agri-Resources vs. Global Clean Energy | Golden Agri-Resources vs. Edible Garden AG | Golden Agri-Resources vs. Local Bounti Corp | Golden Agri-Resources vs. Village Farms International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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