Correlation Between SentinelOne and K2A Knaust
Can any of the company-specific risk be diversified away by investing in both SentinelOne and K2A Knaust 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 K2A Knaust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and K2A Knaust Andersson, you can compare the effects of market volatilities on SentinelOne and K2A Knaust 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 K2A Knaust. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and K2A Knaust.
Diversification Opportunities for SentinelOne and K2A Knaust
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and K2A is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and K2A Knaust Andersson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K2A Knaust Andersson 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 K2A Knaust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K2A Knaust Andersson has no effect on the direction of SentinelOne i.e., SentinelOne and K2A Knaust go up and down completely randomly.
Pair Corralation between SentinelOne and K2A Knaust
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.6 times more return on investment than K2A Knaust. However, SentinelOne is 1.68 times less risky than K2A Knaust. It trades about -0.11 of its potential returns per unit of risk. K2A Knaust Andersson is currently generating about -0.25 per unit of risk. If you would invest 2,327 in SentinelOne on November 28, 2024 and sell it today you would lose (139.00) from holding SentinelOne or give up 5.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. K2A Knaust Andersson
Performance |
| Timeline |
| SentinelOne |
| K2A Knaust Andersson |
SentinelOne and K2A Knaust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and K2A Knaust
The main advantage of trading using opposite SentinelOne and K2A Knaust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, K2A Knaust 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 K2A Knaust will offset losses from the drop in K2A Knaust's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| K2A Knaust vs. K Fast Holding AB | K2A Knaust vs. Nyfosa AB | K2A Knaust vs. Fastighets AB Balder | K2A Knaust vs. Catena AB |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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