Correlation Between SentinelOne and Logitech International
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Logitech International 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 Logitech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Logitech International SA, you can compare the effects of market volatilities on SentinelOne and Logitech International 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 Logitech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Logitech International.
Diversification Opportunities for SentinelOne and Logitech International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Logitech is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Logitech International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logitech International 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 Logitech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logitech International has no effect on the direction of SentinelOne i.e., SentinelOne and Logitech International go up and down completely randomly.
Pair Corralation between SentinelOne and Logitech International
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.23 times more return on investment than Logitech International. However, SentinelOne is 1.23 times more volatile than Logitech International SA. It trades about 0.17 of its potential returns per unit of risk. Logitech International SA is currently generating about 0.03 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
SentinelOne vs. Logitech International SA
Performance |
| Timeline |
| SentinelOne |
| Logitech International |
SentinelOne and Logitech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Logitech International
The main advantage of trading using opposite SentinelOne and Logitech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Logitech International 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 Logitech International will offset losses from the drop in Logitech International's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Logitech International vs. Geberit AG | Logitech International vs. Sika AG | Logitech International vs. Lonza Group AG | Logitech International vs. Swiss Life Holding |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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