Correlation Between SentinelOne and Lupatech
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lupatech 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 Lupatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lupatech SA, you can compare the effects of market volatilities on SentinelOne and Lupatech 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 Lupatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lupatech.
Diversification Opportunities for SentinelOne and Lupatech
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Lupatech is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lupatech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lupatech SA 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 Lupatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lupatech SA has no effect on the direction of SentinelOne i.e., SentinelOne and Lupatech go up and down completely randomly.
Pair Corralation between SentinelOne and Lupatech
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.91 times more return on investment than Lupatech. However, SentinelOne is 1.09 times less risky than Lupatech. It trades about 0.18 of its potential returns per unit of risk. Lupatech SA is currently generating about -0.09 per unit of risk. If you would invest 2,609 in SentinelOne on August 27, 2024 and sell it today you would earn a total of 245.00 from holding SentinelOne or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
SentinelOne vs. Lupatech SA
Performance |
| Timeline |
| SentinelOne |
| Lupatech SA |
SentinelOne and Lupatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lupatech
The main advantage of trading using opposite SentinelOne and Lupatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lupatech 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 Lupatech will offset losses from the drop in Lupatech's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Lupatech vs. Mitsubishi UFJ Financial | Lupatech vs. Sumitomo Mitsui Financial | Lupatech vs. Toyota Motor | Lupatech vs. Banco Santander Chile |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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