Correlation Between SentinelOne and Aeye
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Aeye 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 Aeye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Aeye Inc, you can compare the effects of market volatilities on SentinelOne and Aeye 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 Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Aeye.
Diversification Opportunities for SentinelOne and Aeye
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and Aeye is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc 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 Aeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeye Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Aeye go up and down completely randomly.
Pair Corralation between SentinelOne and Aeye
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.39 times more return on investment than Aeye. However, SentinelOne is 2.55 times less risky than Aeye. It trades about -0.28 of its potential returns per unit of risk. Aeye Inc is currently generating about -0.23 per unit of risk. If you would invest 2,370 in SentinelOne on December 6, 2024 and sell it today you would lose (323.00) from holding SentinelOne or give up 13.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Aeye Inc
Performance |
| Timeline |
| SentinelOne |
| Aeye Inc |
SentinelOne and Aeye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Aeye
The main advantage of trading using opposite SentinelOne and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Aeye 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 Aeye will offset losses from the drop in Aeye's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings |
| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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