Correlation Between SentinelOne and Galway Metals
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Galway Metals 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 Galway Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Galway Metals, you can compare the effects of market volatilities on SentinelOne and Galway Metals 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 Galway Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Galway Metals.
Diversification Opportunities for SentinelOne and Galway Metals
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Galway is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Galway Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galway Metals 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 Galway Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galway Metals has no effect on the direction of SentinelOne i.e., SentinelOne and Galway Metals go up and down completely randomly.
Pair Corralation between SentinelOne and Galway Metals
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.43 times more return on investment than Galway Metals. However, SentinelOne is 2.31 times less risky than Galway Metals. It trades about 0.11 of its potential returns per unit of risk. Galway Metals is currently generating about -0.24 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Galway Metals
Performance |
| Timeline |
| SentinelOne |
| Galway Metals |
SentinelOne and Galway Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Galway Metals
The main advantage of trading using opposite SentinelOne and Galway Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Galway Metals 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 Galway Metals will offset losses from the drop in Galway Metals' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Galway Metals vs. First Majestic Silver | Galway Metals vs. Ivanhoe Energy | Galway Metals vs. Orezone Gold Corp | Galway Metals vs. Faraday Copper Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets |