Correlation Between SentinelOne and Lantheus Holdings
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lantheus Holdings 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 Lantheus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lantheus Holdings, you can compare the effects of market volatilities on SentinelOne and Lantheus Holdings 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 Lantheus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lantheus Holdings.
Diversification Opportunities for SentinelOne and Lantheus Holdings
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Lantheus is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lantheus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantheus Holdings 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 Lantheus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantheus Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and Lantheus Holdings go up and down completely randomly.
Pair Corralation between SentinelOne and Lantheus Holdings
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.45 times more return on investment than Lantheus Holdings. However, SentinelOne is 2.22 times less risky than Lantheus Holdings. It trades about 0.23 of its potential returns per unit of risk. Lantheus Holdings is currently generating about -0.16 per unit of risk. If you would invest 2,528 in SentinelOne on August 24, 2024 and sell it today you would earn a total of 326.00 from holding SentinelOne or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lantheus Holdings
Performance |
| Timeline |
| SentinelOne |
| Lantheus Holdings |
SentinelOne and Lantheus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lantheus Holdings
The main advantage of trading using opposite SentinelOne and Lantheus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lantheus Holdings 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 Lantheus Holdings will offset losses from the drop in Lantheus Holdings' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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