Correlation Between SentinelOne and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Impala Platinum 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 Impala Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Impala Platinum Holdings, you can compare the effects of market volatilities on SentinelOne and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Impala Platinum.
Diversification Opportunities for SentinelOne and Impala Platinum
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Impala is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and Impala Platinum go up and down completely randomly.
Pair Corralation between SentinelOne and Impala Platinum
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.99 times more return on investment than Impala Platinum. However, SentinelOne is 1.01 times less risky than Impala Platinum. It trades about 0.02 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about -0.02 per unit of risk. If you would invest 1,787 in SentinelOne on December 4, 2024 and sell it today you would earn a total of 147.00 from holding SentinelOne or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
SentinelOne vs. Impala Platinum Holdings
Performance |
| Timeline |
| SentinelOne |
| Impala Platinum Holdings |
SentinelOne and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Impala Platinum
The main advantage of trading using opposite SentinelOne and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| SentinelOne vs. Palo Alto Networks | ||
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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