Correlation Between SentinelOne and Global Crossing
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Global Crossing 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 Global Crossing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Global Crossing Airlines, you can compare the effects of market volatilities on SentinelOne and Global Crossing 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 Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Global Crossing.
Diversification Opportunities for SentinelOne and Global Crossing
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Global is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of SentinelOne i.e., SentinelOne and Global Crossing go up and down completely randomly.
Pair Corralation between SentinelOne and Global Crossing
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.46 times more return on investment than Global Crossing. However, SentinelOne is 2.18 times less risky than Global Crossing. It trades about 0.11 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about -0.22 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Global Crossing Airlines
Performance |
| Timeline |
| SentinelOne |
| Global Crossing Airlines |
SentinelOne and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Global Crossing
The main advantage of trading using opposite SentinelOne and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Global Crossing 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 Global Crossing will offset losses from the drop in Global Crossing's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Global Crossing vs. Berkshire Hathaway CDR | Global Crossing vs. E L Financial Corp | Global Crossing vs. E L Financial 3 | Global Crossing vs. Molson Coors Canada |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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