Correlation Between SentinelOne and Kid ASA
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Kid ASA 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 Kid ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Kid ASA, you can compare the effects of market volatilities on SentinelOne and Kid ASA 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 Kid ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Kid ASA.
Diversification Opportunities for SentinelOne and Kid ASA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Kid is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Kid ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kid ASA 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 Kid ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kid ASA has no effect on the direction of SentinelOne i.e., SentinelOne and Kid ASA go up and down completely randomly.
Pair Corralation between SentinelOne and Kid ASA
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.61 times more return on investment than Kid ASA. However, SentinelOne is 1.61 times more volatile than Kid ASA. It trades about 0.07 of its potential returns per unit of risk. Kid ASA is currently generating about 0.08 per unit of risk. If you would invest 1,455 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,340 from holding SentinelOne or generate 92.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
SentinelOne vs. Kid ASA
Performance |
| Timeline |
| SentinelOne |
| Kid ASA |
SentinelOne and Kid ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Kid ASA
The main advantage of trading using opposite SentinelOne and Kid ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Kid ASA 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 Kid ASA will offset losses from the drop in Kid ASA's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Kid ASA vs. Europris ASA | Kid ASA vs. Selvaag Bolig ASA | Kid ASA vs. Storebrand ASA | Kid ASA vs. Kitron ASA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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