Correlation Between SentinelOne and Kerry Group
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Kerry 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 Kerry Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Kerry Group PLC, you can compare the effects of market volatilities on SentinelOne and Kerry 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 Kerry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Kerry Group.
Diversification Opportunities for SentinelOne and Kerry Group
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Kerry is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Kerry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Group PLC 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 Kerry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Group PLC has no effect on the direction of SentinelOne i.e., SentinelOne and Kerry Group go up and down completely randomly.
Pair Corralation between SentinelOne and Kerry Group
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.06 times more return on investment than Kerry Group. However, SentinelOne is 1.06 times more volatile than Kerry Group PLC. It trades about 0.17 of its potential returns per unit of risk. Kerry Group PLC is currently generating about -0.04 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Kerry Group PLC
Performance |
| Timeline |
| SentinelOne |
| Kerry Group PLC |
SentinelOne and Kerry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Kerry Group
The main advantage of trading using opposite SentinelOne and Kerry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Kerry 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 Kerry Group will offset losses from the drop in Kerry Group's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Kerry Group vs. The A2 Milk | Kerry Group vs. Altavoz Entertainment | Kerry Group vs. Artisan Consumer Goods | Kerry Group vs. General Mills |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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