Correlation Between SentinelOne and GigaCloud Technology
Can any of the company-specific risk be diversified away by investing in both SentinelOne and GigaCloud Technology 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 GigaCloud Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and GigaCloud Technology Class, you can compare the effects of market volatilities on SentinelOne and GigaCloud Technology 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 GigaCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and GigaCloud Technology.
Diversification Opportunities for SentinelOne and GigaCloud Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and GigaCloud is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and GigaCloud Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaCloud Technology 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 GigaCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaCloud Technology has no effect on the direction of SentinelOne i.e., SentinelOne and GigaCloud Technology go up and down completely randomly.
Pair Corralation between SentinelOne and GigaCloud Technology
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.38 times more return on investment than GigaCloud Technology. However, SentinelOne is 2.6 times less risky than GigaCloud Technology. It trades about 0.13 of its potential returns per unit of risk. GigaCloud Technology Class is currently generating about 0.04 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. GigaCloud Technology Class
Performance |
| Timeline |
| SentinelOne |
| GigaCloud Technology |
SentinelOne and GigaCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and GigaCloud Technology
The main advantage of trading using opposite SentinelOne and GigaCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, GigaCloud Technology 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 GigaCloud Technology will offset losses from the drop in GigaCloud Technology's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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