Correlation Between SentinelOne and Lucky Core
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lucky Core 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 Lucky Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lucky Core Ind, you can compare the effects of market volatilities on SentinelOne and Lucky Core 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 Lucky Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lucky Core.
Diversification Opportunities for SentinelOne and Lucky Core
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Lucky is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lucky Core Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucky Core Ind 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 Lucky Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucky Core Ind has no effect on the direction of SentinelOne i.e., SentinelOne and Lucky Core go up and down completely randomly.
Pair Corralation between SentinelOne and Lucky Core
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.3 times more return on investment than Lucky Core. However, SentinelOne is 2.3 times more volatile than Lucky Core Ind. It trades about 0.11 of its potential returns per unit of risk. Lucky Core Ind is currently generating about -0.16 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lucky Core Ind
Performance |
| Timeline |
| SentinelOne |
| Lucky Core Ind |
SentinelOne and Lucky Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lucky Core
The main advantage of trading using opposite SentinelOne and Lucky Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lucky Core 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 Lucky Core will offset losses from the drop in Lucky Core's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Lucky Core vs. Escorts Investment Bank | Lucky Core vs. TPL Insurance | Lucky Core vs. JS Global Banking | Lucky Core vs. Habib Insurance |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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