Correlation Between SentinelOne and Magna Mining
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Magna Mining 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 Magna Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Magna Mining, you can compare the effects of market volatilities on SentinelOne and Magna Mining 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 Magna Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Magna Mining.
Diversification Opportunities for SentinelOne and Magna Mining
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Magna is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Magna Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Mining 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 Magna Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Mining has no effect on the direction of SentinelOne i.e., SentinelOne and Magna Mining go up and down completely randomly.
Pair Corralation between SentinelOne and Magna Mining
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.66 times more return on investment than Magna Mining. However, SentinelOne is 1.52 times less risky than Magna Mining. It trades about 0.16 of its potential returns per unit of risk. Magna Mining is currently generating about 0.05 per unit of risk. If you would invest 2,412 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 442.00 from holding SentinelOne or generate 18.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Magna Mining
Performance |
| Timeline |
| SentinelOne |
| Magna Mining |
SentinelOne and Magna Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Magna Mining
The main advantage of trading using opposite SentinelOne and Magna Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Magna Mining 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 Magna Mining will offset losses from the drop in Magna Mining's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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