Correlation Between SentinelOne and Garuda Indonesia
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Garuda Indonesia 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 Garuda Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Garuda Indonesia Persero, you can compare the effects of market volatilities on SentinelOne and Garuda Indonesia 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 Garuda Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Garuda Indonesia.
Diversification Opportunities for SentinelOne and Garuda Indonesia
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Garuda is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Garuda Indonesia Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garuda Indonesia Persero 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 Garuda Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garuda Indonesia Persero has no effect on the direction of SentinelOne i.e., SentinelOne and Garuda Indonesia go up and down completely randomly.
Pair Corralation between SentinelOne and Garuda Indonesia
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.85 times more return on investment than Garuda Indonesia. However, SentinelOne is 1.18 times less risky than Garuda Indonesia. It trades about 0.13 of its potential returns per unit of risk. Garuda Indonesia Persero is currently generating about -0.11 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 179.00 from holding SentinelOne or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Garuda Indonesia Persero
Performance |
| Timeline |
| SentinelOne |
| Garuda Indonesia Persero |
SentinelOne and Garuda Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Garuda Indonesia
The main advantage of trading using opposite SentinelOne and Garuda Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Garuda Indonesia 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 Garuda Indonesia will offset losses from the drop in Garuda Indonesia's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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 CEOs Directory module to screen CEOs from public companies around the world.
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