Correlation Between SentinelOne and Key Energy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Key Energy 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 Key Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Key Energy Services, you can compare the effects of market volatilities on SentinelOne and Key Energy 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 Key Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Key Energy.
Diversification Opportunities for SentinelOne and Key Energy
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Key is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Key Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Key Energy Services 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 Key Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Key Energy Services has no effect on the direction of SentinelOne i.e., SentinelOne and Key Energy go up and down completely randomly.
Pair Corralation between SentinelOne and Key Energy
If you would invest 1,507 in SentinelOne on August 27, 2024 and sell it today you would earn a total of 1,347 from holding SentinelOne or generate 89.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.66% |
| Values | Daily Returns |
SentinelOne vs. Key Energy Services
Performance |
| Timeline |
| SentinelOne |
| Key Energy Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and Key Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Key Energy
The main advantage of trading using opposite SentinelOne and Key Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Key Energy 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 Key Energy will offset losses from the drop in Key Energy's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Key Energy vs. Archrock | Key Energy vs. Newpark Resources | Key Energy vs. Bristow Group | Key Energy vs. TechnipFMC PLC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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