Correlation Between SentinelOne and Aim International
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Aim International 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 Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Aim International Mutual, you can compare the effects of market volatilities on SentinelOne and Aim International 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 Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Aim International.
Diversification Opportunities for SentinelOne and Aim International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Aim is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aim International Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim International Mutual 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 Aim International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim International Mutual has no effect on the direction of SentinelOne i.e., SentinelOne and Aim International go up and down completely randomly.
Pair Corralation between SentinelOne and Aim International
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.13 times more return on investment than Aim International. However, SentinelOne is 3.13 times more volatile than Aim International Mutual. It trades about 0.01 of its potential returns per unit of risk. Aim International Mutual is currently generating about -0.01 per unit of risk. If you would invest 2,480 in SentinelOne on November 9, 2024 and sell it today you would lose (96.00) from holding SentinelOne or give up 3.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
SentinelOne vs. Aim International Mutual
Performance |
| Timeline |
| SentinelOne |
| Aim International Mutual |
SentinelOne and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Aim International
The main advantage of trading using opposite SentinelOne and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Aim International 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 Aim International will offset losses from the drop in Aim International's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Aim International vs. Tekla Healthcare Investors | Aim International vs. Hartford Healthcare Hls | Aim International vs. Eaton Vance Worldwide | Aim International vs. Health Care Ultrasector |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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