Correlation Between SentinelOne and Lombard Et
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lombard Et 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 Lombard Et into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lombard et Medot, you can compare the effects of market volatilities on SentinelOne and Lombard Et 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 Lombard Et. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lombard Et.
Diversification Opportunities for SentinelOne and Lombard Et
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Lombard is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lombard et Medot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lombard et Medot 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 Lombard Et. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lombard et Medot has no effect on the direction of SentinelOne i.e., SentinelOne and Lombard Et go up and down completely randomly.
Pair Corralation between SentinelOne and Lombard Et
Taking into account the 90-day investment horizon SentinelOne is expected to generate 8.75 times less return on investment than Lombard Et. But when comparing it to its historical volatility, SentinelOne is 2.45 times less risky than Lombard Et. It trades about 0.06 of its potential returns per unit of risk. Lombard et Medot is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,470 in Lombard et Medot on October 26, 2024 and sell it today you would earn a total of 200.00 from holding Lombard et Medot or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
SentinelOne vs. Lombard et Medot
Performance |
| Timeline |
| SentinelOne |
| Lombard et Medot |
SentinelOne and Lombard Et Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lombard Et
The main advantage of trading using opposite SentinelOne and Lombard Et positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lombard Et 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 Lombard Et will offset losses from the drop in Lombard Et's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Lombard Et vs. Credit Agricole SA | Lombard Et vs. Invibes Advertising NV | Lombard Et vs. Air France KLM SA | Lombard Et vs. Linedata Services SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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