Correlation Between SentinelOne and PUMA SE
Can any of the company-specific risk be diversified away by investing in both SentinelOne and PUMA SE 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 PUMA SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and PUMA SE, you can compare the effects of market volatilities on SentinelOne and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and PUMA SE.
Diversification Opportunities for SentinelOne and PUMA SE
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and PUMA is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and PUMA SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE has no effect on the direction of SentinelOne i.e., SentinelOne and PUMA SE go up and down completely randomly.
Pair Corralation between SentinelOne and PUMA SE
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.34 times more return on investment than PUMA SE. However, SentinelOne is 1.34 times more volatile than PUMA SE. It trades about 0.07 of its potential returns per unit of risk. PUMA SE is currently generating about 0.0 per unit of risk. If you would invest 1,492 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 1,303 from holding SentinelOne or generate 87.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
SentinelOne vs. PUMA SE
Performance |
| Timeline |
| SentinelOne |
| PUMA SE |
SentinelOne and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and PUMA SE
The main advantage of trading using opposite SentinelOne and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| PUMA SE vs. Asics Corp ADR | PUMA SE vs. American Rebel Holdings | PUMA SE vs. American Rebel Holdings | PUMA SE vs. Crocs Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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