Correlation Between SentinelOne and Geberit AG
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Geberit 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 Geberit AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Geberit AG, you can compare the effects of market volatilities on SentinelOne and Geberit 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 Geberit AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Geberit AG.
Diversification Opportunities for SentinelOne and Geberit AG
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Geberit is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Geberit AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geberit AG 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 Geberit AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geberit AG has no effect on the direction of SentinelOne i.e., SentinelOne and Geberit AG go up and down completely randomly.
Pair Corralation between SentinelOne and Geberit AG
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.51 times more return on investment than Geberit AG. However, SentinelOne is 2.51 times more volatile than Geberit AG. It trades about 0.17 of its potential returns per unit of risk. Geberit AG is currently generating about -0.08 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Geberit AG
Performance |
| Timeline |
| SentinelOne |
| Geberit AG |
SentinelOne and Geberit AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Geberit AG
The main advantage of trading using opposite SentinelOne and Geberit AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Geberit 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 Geberit AG will offset losses from the drop in Geberit AG's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |