Correlation Between SentinelOne and Aurora Mobile
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Aurora Mobile 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 Aurora Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Aurora Mobile, you can compare the effects of market volatilities on SentinelOne and Aurora Mobile 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 Aurora Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Aurora Mobile.
Diversification Opportunities for SentinelOne and Aurora Mobile
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Aurora is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aurora Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Mobile 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 Aurora Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Mobile has no effect on the direction of SentinelOne i.e., SentinelOne and Aurora Mobile go up and down completely randomly.
Pair Corralation between SentinelOne and Aurora Mobile
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.36 times less return on investment than Aurora Mobile. But when comparing it to its historical volatility, SentinelOne is 2.27 times less risky than Aurora Mobile. It trades about 0.07 of its potential returns per unit of risk. Aurora Mobile is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Aurora Mobile on August 26, 2024 and sell it today you would earn a total of 480.00 from holding Aurora Mobile or generate 217.19% 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. Aurora Mobile
Performance |
| Timeline |
| SentinelOne |
| Aurora Mobile |
SentinelOne and Aurora Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Aurora Mobile
The main advantage of trading using opposite SentinelOne and Aurora Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Aurora Mobile 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 Aurora Mobile will offset losses from the drop in Aurora Mobile's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Aurora Mobile vs. GigaCloud Technology Class | Aurora Mobile vs. Arqit Quantum | Aurora Mobile vs. Telos Corp | Aurora Mobile vs. Cemtrex |
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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