Correlation Between SentinelOne and LUXOR-B

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SentinelOne and LUXOR-B 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 LUXOR-B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on SentinelOne and LUXOR-B 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 LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and LUXOR-B.

Diversification Opportunities for SentinelOne and LUXOR-B

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between SentinelOne and LUXOR-B is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet 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 LUXOR-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsselskabet has no effect on the direction of SentinelOne i.e., SentinelOne and LUXOR-B go up and down completely randomly.

Pair Corralation between SentinelOne and LUXOR-B

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.19 times more return on investment than LUXOR-B. However, SentinelOne is 1.19 times more volatile than Investeringsselskabet Luxor AS. It trades about 0.13 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.07 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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

SentinelOne  vs.  Investeringsselskabet Luxor AS

 Performance 
       Timeline  
SentinelOne 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, SentinelOne unveiled solid returns over the last few months and may actually be approaching a breakup point.
Investeringsselskabet 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Investeringsselskabet Luxor AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, LUXOR-B is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

SentinelOne and LUXOR-B Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SentinelOne and LUXOR-B

The main advantage of trading using opposite SentinelOne and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, LUXOR-B 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 LUXOR-B will offset losses from the drop in LUXOR-B's long position.
SentinelOne vs. Crowdstrike Holdings
SentinelOne vs. Okta Inc
SentinelOne vs. Cloudflare
SentinelOne vs. MongoDB
The idea behind SentinelOne and Investeringsselskabet Luxor AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
LUXOR-B vs. Skjern Bank AS
LUXOR-B vs. Groenlandsbanken AS
LUXOR-B vs. Fynske Bank AS
LUXOR-B vs. Lollands Bank
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Share Portfolio
Track or share privately all of your investments from the convenience of any device
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY