Correlation Between SentinelOne and Perimeter Solutions
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Perimeter Solutions 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 Perimeter Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Perimeter Solutions SA, you can compare the effects of market volatilities on SentinelOne and Perimeter Solutions 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 Perimeter Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Perimeter Solutions.
Diversification Opportunities for SentinelOne and Perimeter Solutions
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Perimeter is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Perimeter Solutions SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perimeter Solutions 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 Perimeter Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perimeter Solutions has no effect on the direction of SentinelOne i.e., SentinelOne and Perimeter Solutions go up and down completely randomly.
Pair Corralation between SentinelOne and Perimeter Solutions
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.68 times more return on investment than Perimeter Solutions. However, SentinelOne is 1.47 times less risky than Perimeter Solutions. It trades about 0.12 of its potential returns per unit of risk. Perimeter Solutions SA is currently generating about -0.08 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Perimeter Solutions SA
Performance |
| Timeline |
| SentinelOne |
| Perimeter Solutions |
SentinelOne and Perimeter Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Perimeter Solutions
The main advantage of trading using opposite SentinelOne and Perimeter Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Perimeter Solutions 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 Perimeter Solutions will offset losses from the drop in Perimeter Solutions' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Perimeter Solutions vs. Eastman Chemical | Perimeter Solutions vs. Linde plc Ordinary | Perimeter Solutions vs. Ecolab Inc | Perimeter Solutions vs. Sherwin Williams Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |