Correlation Between SentinelOne and Hong Kong
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Hong Kong 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 Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Hong Kong Exchange, you can compare the effects of market volatilities on SentinelOne and Hong Kong 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 Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Hong Kong.
Diversification Opportunities for SentinelOne and Hong Kong
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Hong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Hong Kong Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Exchange 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 Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Exchange has no effect on the direction of SentinelOne i.e., SentinelOne and Hong Kong go up and down completely randomly.
Pair Corralation between SentinelOne and Hong Kong
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.02 times more return on investment than Hong Kong. However, SentinelOne is 1.02 times more volatile than Hong Kong Exchange. It trades about 0.19 of its potential returns per unit of risk. Hong Kong Exchange is currently generating about -0.08 per unit of risk. If you would invest 2,597 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 257.00 from holding SentinelOne or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Hong Kong Exchange
Performance |
| Timeline |
| SentinelOne |
| Hong Kong Exchange |
SentinelOne and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Hong Kong
The main advantage of trading using opposite SentinelOne and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |