Correlation Between SentinelOne and KH Group
Can any of the company-specific risk be diversified away by investing in both SentinelOne and KH Group 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 KH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and KH Group Oyj, you can compare the effects of market volatilities on SentinelOne and KH Group 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 KH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and KH Group.
Diversification Opportunities for SentinelOne and KH Group
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and KHG is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and KH Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KH Group Oyj 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 KH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KH Group Oyj has no effect on the direction of SentinelOne i.e., SentinelOne and KH Group go up and down completely randomly.
Pair Corralation between SentinelOne and KH Group
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.26 times more return on investment than KH Group. However, SentinelOne is 1.26 times more volatile than KH Group Oyj. It trades about 0.06 of its potential returns per unit of risk. KH Group Oyj is currently generating about -0.01 per unit of risk. If you would invest 1,722 in SentinelOne on November 28, 2024 and sell it today you would earn a total of 466.00 from holding SentinelOne or generate 27.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.46% |
| Values | Daily Returns |
SentinelOne vs. KH Group Oyj
Performance |
| Timeline |
| SentinelOne |
| KH Group Oyj |
SentinelOne and KH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and KH Group
The main advantage of trading using opposite SentinelOne and KH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, KH Group 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 KH Group will offset losses from the drop in KH Group's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| KH Group vs. SSH Communications Security | KH Group vs. Finnair Oyj | KH Group vs. Sotkamo Silver AB | KH Group vs. Detection Technology OY |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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