Correlation Between SentinelOne and Magnis Energy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Magnis Energy 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 Magnis Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Magnis Energy Technologies, you can compare the effects of market volatilities on SentinelOne and Magnis Energy 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 Magnis Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Magnis Energy.
Diversification Opportunities for SentinelOne and Magnis Energy
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Magnis is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Magnis Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnis Energy Techno 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 Magnis Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnis Energy Techno has no effect on the direction of SentinelOne i.e., SentinelOne and Magnis Energy go up and down completely randomly.
Pair Corralation between SentinelOne and Magnis Energy
Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.3 times less return on investment than Magnis Energy. But when comparing it to its historical volatility, SentinelOne is 3.42 times less risky than Magnis Energy. It trades about 0.17 of its potential returns per unit of risk. Magnis Energy Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Magnis Energy Technologies on September 1, 2024 and sell it today you would earn a total of 0.75 from holding Magnis Energy Technologies or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Magnis Energy Technologies
Performance |
| Timeline |
| SentinelOne |
| Magnis Energy Techno |
SentinelOne and Magnis Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Magnis Energy
The main advantage of trading using opposite SentinelOne and Magnis Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Magnis Energy 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 Magnis Energy will offset losses from the drop in Magnis Energy's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Magnis Energy vs. AFC Energy plc | Magnis Energy vs. Loop Energy | Magnis Energy vs. Sunrise New Energy | Magnis Energy vs. Energizer 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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