Correlation Between SentinelOne and Lion One
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lion One 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 Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lion One Metals, you can compare the effects of market volatilities on SentinelOne and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lion One.
Diversification Opportunities for SentinelOne and Lion One
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and Lion is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of SentinelOne i.e., SentinelOne and Lion One go up and down completely randomly.
Pair Corralation between SentinelOne and Lion One
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.69 times more return on investment than Lion One. However, SentinelOne is 1.44 times less risky than Lion One. It trades about 0.11 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.22 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 | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. Lion One Metals
Performance |
| Timeline |
| SentinelOne |
| Lion One Metals |
SentinelOne and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lion One
The main advantage of trading using opposite SentinelOne and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Lion One vs. Arizona Sonoran Copper | Lion One vs. Filo Mining Corp | Lion One vs. Marimaca Copper Corp | Lion One vs. iShares Canadian HYBrid |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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