Correlation Between SentinelOne and Pratama Abadi
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Pratama Abadi 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 Pratama Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Pratama Abadi Nusa, you can compare the effects of market volatilities on SentinelOne and Pratama Abadi 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 Pratama Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Pratama Abadi.
Diversification Opportunities for SentinelOne and Pratama Abadi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Pratama is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Pratama Abadi Nusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pratama Abadi Nusa 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 Pratama Abadi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pratama Abadi Nusa has no effect on the direction of SentinelOne i.e., SentinelOne and Pratama Abadi go up and down completely randomly.
Pair Corralation between SentinelOne and Pratama Abadi
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.17 times less return on investment than Pratama Abadi. But when comparing it to its historical volatility, SentinelOne is 1.22 times less risky than Pratama Abadi. It trades about 0.07 of its potential returns per unit of risk. Pratama Abadi Nusa is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 159,500 in Pratama Abadi Nusa on August 28, 2024 and sell it today you would earn a total of 1,248,000 from holding Pratama Abadi Nusa or generate 782.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.48% |
| Values | Daily Returns |
SentinelOne vs. Pratama Abadi Nusa
Performance |
| Timeline |
| SentinelOne |
| Pratama Abadi Nusa |
SentinelOne and Pratama Abadi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Pratama Abadi
The main advantage of trading using opposite SentinelOne and Pratama Abadi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Pratama Abadi 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 Pratama Abadi will offset losses from the drop in Pratama Abadi's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Pratama Abadi vs. Garudafood Putra Putri | Pratama Abadi vs. Prima Cakrawala Abadi | Pratama Abadi vs. Mahkota Group Tbk | Pratama Abadi vs. MNC Studios International |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |