Correlation Between SentinelOne and Lassonde Industries
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lassonde Industries 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 Lassonde Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lassonde Industries, you can compare the effects of market volatilities on SentinelOne and Lassonde Industries 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 Lassonde Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lassonde Industries.
Diversification Opportunities for SentinelOne and Lassonde Industries
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Lassonde is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lassonde Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lassonde Industries 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 Lassonde Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lassonde Industries has no effect on the direction of SentinelOne i.e., SentinelOne and Lassonde Industries go up and down completely randomly.
Pair Corralation between SentinelOne and Lassonde Industries
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.12 times more return on investment than Lassonde Industries. However, SentinelOne is 1.12 times more volatile than Lassonde Industries. It trades about 0.19 of its potential returns per unit of risk. Lassonde Industries is currently generating about 0.01 per unit of risk. If you would invest 2,597 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 257.00 from holding SentinelOne or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lassonde Industries
Performance |
| Timeline |
| SentinelOne |
| Lassonde Industries |
SentinelOne and Lassonde Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lassonde Industries
The main advantage of trading using opposite SentinelOne and Lassonde Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lassonde Industries 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 Lassonde Industries will offset losses from the drop in Lassonde Industries' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Lassonde Industries vs. Richelieu Hardware | Lassonde Industries vs. Stella Jones | Lassonde Industries vs. Saputo Inc | Lassonde Industries vs. High Liner Foods |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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