Correlation Between SentinelOne and Resurs Holding
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Resurs Holding 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 Resurs Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Resurs Holding AB, you can compare the effects of market volatilities on SentinelOne and Resurs Holding 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 Resurs Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Resurs Holding.
Diversification Opportunities for SentinelOne and Resurs Holding
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and Resurs is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Resurs Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resurs Holding AB 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 Resurs Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resurs Holding AB has no effect on the direction of SentinelOne i.e., SentinelOne and Resurs Holding go up and down completely randomly.
Pair Corralation between SentinelOne and Resurs Holding
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.06 times more return on investment than Resurs Holding. However, SentinelOne is 1.06 times more volatile than Resurs Holding AB. It trades about 0.06 of its potential returns per unit of risk. Resurs Holding AB is currently generating about 0.04 per unit of risk. If you would invest 1,574 in SentinelOne on September 2, 2024 and sell it today you would earn a total of 1,221 from holding SentinelOne or generate 77.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.94% |
| Values | Daily Returns |
SentinelOne vs. Resurs Holding AB
Performance |
| Timeline |
| SentinelOne |
| Resurs Holding AB |
SentinelOne and Resurs Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Resurs Holding
The main advantage of trading using opposite SentinelOne and Resurs Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Resurs Holding 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 Resurs Holding will offset losses from the drop in Resurs Holding's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Resurs Holding vs. Bure Equity AB | Resurs Holding vs. Creades AB | Resurs Holding vs. L E Lundbergfretagen | Resurs Holding vs. Industrivarden AB ser |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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