Correlation Between SentinelOne and Imerys SA
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Imerys SA 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 Imerys SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Imerys SA, you can compare the effects of market volatilities on SentinelOne and Imerys SA 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 Imerys SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Imerys SA.
Diversification Opportunities for SentinelOne and Imerys SA
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Imerys is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Imerys SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imerys 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 Imerys SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imerys SA has no effect on the direction of SentinelOne i.e., SentinelOne and Imerys SA go up and down completely randomly.
Pair Corralation between SentinelOne and Imerys SA
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Imerys SA. In addition to that, SentinelOne is 1.22 times more volatile than Imerys SA. It trades about -0.06 of its total potential returns per unit of risk. Imerys SA is currently generating about -0.04 per unit of volatility. If you would invest 2,954 in Imerys SA on October 26, 2024 and sell it today you would lose (202.00) from holding Imerys SA or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
SentinelOne vs. Imerys SA
Performance |
| Timeline |
| SentinelOne |
| Imerys SA |
SentinelOne and Imerys SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Imerys SA
The main advantage of trading using opposite SentinelOne and Imerys SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Imerys SA 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 Imerys SA will offset losses from the drop in Imerys SA's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Imerys SA vs. Rubis SCA | Imerys SA vs. Eramet SA | Imerys SA vs. Nexity | Imerys SA vs. Compagnie de Saint Gobain |
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 CEOs Directory module to screen CEOs from public companies around the world.
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