Correlation Between SentinelOne and BMTC
Can any of the company-specific risk be diversified away by investing in both SentinelOne and BMTC 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 BMTC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and BMTC Group, you can compare the effects of market volatilities on SentinelOne and BMTC 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 BMTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and BMTC.
Diversification Opportunities for SentinelOne and BMTC
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and BMTC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and BMTC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMTC Group 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 BMTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMTC Group has no effect on the direction of SentinelOne i.e., SentinelOne and BMTC go up and down completely randomly.
Pair Corralation between SentinelOne and BMTC
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.35 times more return on investment than BMTC. However, SentinelOne is 2.35 times more volatile than BMTC Group. It trades about 0.05 of its potential returns per unit of risk. BMTC Group is currently generating about 0.03 per unit of risk. If you would invest 1,537 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 1,271 from holding SentinelOne or generate 82.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SentinelOne vs. BMTC Group
Performance |
| Timeline |
| SentinelOne |
| BMTC Group |
SentinelOne and BMTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and BMTC
The main advantage of trading using opposite SentinelOne and BMTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, BMTC 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 BMTC will offset losses from the drop in BMTC's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| BMTC vs. Eros Resources Corp | BMTC vs. Apple Inc CDR | BMTC vs. European Residential Real | BMTC vs. Canadian Utilities Ltd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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