Correlation Between SentinelOne and Lipum AB
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lipum AB 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 Lipum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lipum AB, you can compare the effects of market volatilities on SentinelOne and Lipum AB 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 Lipum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lipum AB.
Diversification Opportunities for SentinelOne and Lipum AB
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Lipum is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lipum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipum AB 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 Lipum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipum AB has no effect on the direction of SentinelOne i.e., SentinelOne and Lipum AB go up and down completely randomly.
Pair Corralation between SentinelOne and Lipum AB
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.04 times less return on investment than Lipum AB. But when comparing it to its historical volatility, SentinelOne is 1.52 times less risky than Lipum AB. It trades about 0.07 of its potential returns per unit of risk. Lipum AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 896.00 in Lipum AB on September 1, 2024 and sell it today you would earn a total of 534.00 from holding Lipum AB or generate 59.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.67% |
| Values | Daily Returns |
SentinelOne vs. Lipum AB
Performance |
| Timeline |
| SentinelOne |
| Lipum AB |
SentinelOne and Lipum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lipum AB
The main advantage of trading using opposite SentinelOne and Lipum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lipum AB 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 Lipum AB will offset losses from the drop in Lipum AB's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Lipum AB vs. Ascelia Pharma AB | Lipum AB vs. NextCell Pharma AB | Lipum AB vs. Annexin Pharmaceuticals AB | Lipum AB vs. AlzeCure Pharma |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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