Correlation Between SentinelOne and Knafaim
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Knafaim 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 Knafaim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Knafaim, you can compare the effects of market volatilities on SentinelOne and Knafaim 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 Knafaim. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Knafaim.
Diversification Opportunities for SentinelOne and Knafaim
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Knafaim is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Knafaim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knafaim 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 Knafaim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knafaim has no effect on the direction of SentinelOne i.e., SentinelOne and Knafaim go up and down completely randomly.
Pair Corralation between SentinelOne and Knafaim
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.89 times less return on investment than Knafaim. In addition to that, SentinelOne is 1.27 times more volatile than Knafaim. It trades about 0.02 of its total potential returns per unit of risk. Knafaim is currently generating about 0.11 per unit of volatility. If you would invest 88,656 in Knafaim on August 25, 2024 and sell it today you would earn a total of 43,844 from holding Knafaim or generate 49.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 75.55% |
| Values | Daily Returns |
SentinelOne vs. Knafaim
Performance |
| Timeline |
| SentinelOne |
| Knafaim |
SentinelOne and Knafaim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Knafaim
The main advantage of trading using opposite SentinelOne and Knafaim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Knafaim 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 Knafaim will offset losses from the drop in Knafaim's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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