Correlation Between SentinelOne and Guangzhou Automobile
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Guangzhou Automobile 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 Guangzhou Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Guangzhou Automobile Group, you can compare the effects of market volatilities on SentinelOne and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Guangzhou Automobile.
Diversification Opportunities for SentinelOne and Guangzhou Automobile
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Guangzhou is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of SentinelOne i.e., SentinelOne and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between SentinelOne and Guangzhou Automobile
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.95 times less return on investment than Guangzhou Automobile. But when comparing it to its historical volatility, SentinelOne is 3.08 times less risky than Guangzhou Automobile. It trades about 0.17 of its potential returns per unit of risk. Guangzhou Automobile Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Guangzhou Automobile Group on November 9, 2024 and sell it today you would earn a total of 8.00 from holding Guangzhou Automobile Group or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
SentinelOne vs. Guangzhou Automobile Group
Performance |
| Timeline |
| SentinelOne |
| Guangzhou Automobile |
SentinelOne and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Guangzhou Automobile
The main advantage of trading using opposite SentinelOne and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Guangzhou Automobile vs. Great Wall Motor | Guangzhou Automobile vs. Dongfeng Group | Guangzhou Automobile vs. Great Wall Motor | Guangzhou Automobile vs. BAIC Motor |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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