Correlation Between SentinelOne and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lesaka Technologies 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 Lesaka Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lesaka Technologies, you can compare the effects of market volatilities on SentinelOne and Lesaka Technologies 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 Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lesaka Technologies.
Diversification Opportunities for SentinelOne and Lesaka Technologies
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and Lesaka is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies 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 Lesaka Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesaka Technologies has no effect on the direction of SentinelOne i.e., SentinelOne and Lesaka Technologies go up and down completely randomly.
Pair Corralation between SentinelOne and Lesaka Technologies
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.94 times more return on investment than Lesaka Technologies. However, SentinelOne is 1.06 times less risky than Lesaka Technologies. It trades about 0.13 of its potential returns per unit of risk. Lesaka Technologies is currently generating about -0.03 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lesaka Technologies
Performance |
| Timeline |
| SentinelOne |
| Lesaka Technologies |
SentinelOne and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lesaka Technologies
The main advantage of trading using opposite SentinelOne and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lesaka Technologies 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 Lesaka Technologies will offset losses from the drop in Lesaka Technologies' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Lesaka Technologies vs. Centaur Bci Balanced | Lesaka Technologies vs. Growthpoint Properties | Lesaka Technologies vs. Bowler Metcalf | Lesaka Technologies vs. Shoprite Holdings |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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