Correlation Between SentinelOne and Olympus
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Olympus 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 Olympus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Olympus, you can compare the effects of market volatilities on SentinelOne and Olympus 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 Olympus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Olympus.
Diversification Opportunities for SentinelOne and Olympus
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Olympus is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Olympus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympus 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 Olympus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olympus has no effect on the direction of SentinelOne i.e., SentinelOne and Olympus go up and down completely randomly.
Pair Corralation between SentinelOne and Olympus
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.11 times more return on investment than Olympus. However, SentinelOne is 1.11 times more volatile than Olympus. It trades about 0.16 of its potential returns per unit of risk. Olympus is currently generating about 0.01 per unit of risk. If you would invest 1,722 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,073 from holding SentinelOne or generate 62.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
SentinelOne vs. Olympus
Performance |
| Timeline |
| SentinelOne |
| Olympus |
SentinelOne and Olympus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Olympus
The main advantage of trading using opposite SentinelOne and Olympus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Olympus 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 Olympus will offset losses from the drop in Olympus' long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Olympus vs. Sysmex Corp | Olympus vs. Coloplast AS | Olympus vs. Essilor International SA | Olympus vs. Coloplast A |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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