Correlation Between SentinelOne and Gafisa SA
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Gafisa SA 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 Gafisa SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Gafisa SA, you can compare the effects of market volatilities on SentinelOne and Gafisa SA 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 Gafisa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Gafisa SA.
Diversification Opportunities for SentinelOne and Gafisa SA
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and Gafisa is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Gafisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gafisa SA 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 Gafisa SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gafisa SA has no effect on the direction of SentinelOne i.e., SentinelOne and Gafisa SA go up and down completely randomly.
Pair Corralation between SentinelOne and Gafisa SA
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.44 times more return on investment than Gafisa SA. However, SentinelOne is 2.29 times less risky than Gafisa SA. It trades about 0.11 of its potential returns per unit of risk. Gafisa SA is currently generating about -0.09 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
SentinelOne vs. Gafisa SA
Performance |
| Timeline |
| SentinelOne |
| Gafisa SA |
SentinelOne and Gafisa SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Gafisa SA
The main advantage of trading using opposite SentinelOne and Gafisa SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Gafisa SA 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 Gafisa SA will offset losses from the drop in Gafisa SA's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Gafisa SA vs. Cyrela Brazil Realty | Gafisa SA vs. Rossi Residencial SA | Gafisa SA vs. MRV Engenharia e | Gafisa SA vs. PDG Realty SA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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