Correlation Between SentinelOne and Lonza Group
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lonza Group 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 Lonza Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lonza Group AG, you can compare the effects of market volatilities on SentinelOne and Lonza Group 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 Lonza Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lonza Group.
Diversification Opportunities for SentinelOne and Lonza Group
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Lonza is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lonza Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonza Group AG 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 Lonza Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonza Group AG has no effect on the direction of SentinelOne i.e., SentinelOne and Lonza Group go up and down completely randomly.
Pair Corralation between SentinelOne and Lonza Group
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.19 times more return on investment than Lonza Group. However, SentinelOne is 1.19 times more volatile than Lonza Group AG. It trades about 0.13 of its potential returns per unit of risk. Lonza Group AG is currently generating about -0.06 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lonza Group AG
Performance |
| Timeline |
| SentinelOne |
| Lonza Group AG |
SentinelOne and Lonza Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lonza Group
The main advantage of trading using opposite SentinelOne and Lonza Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lonza Group 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 Lonza Group will offset losses from the drop in Lonza Group's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Lonza Group vs. Sika AG | Lonza Group vs. Givaudan SA | Lonza Group vs. Geberit AG | Lonza Group 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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