Correlation Between SentinelOne and RTL Group
Can any of the company-specific risk be diversified away by investing in both SentinelOne and RTL Group 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 RTL Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and RTL Group SA, you can compare the effects of market volatilities on SentinelOne and RTL Group 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 RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and RTL Group.
Diversification Opportunities for SentinelOne and RTL Group
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and RTL is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA 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 RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of SentinelOne i.e., SentinelOne and RTL Group go up and down completely randomly.
Pair Corralation between SentinelOne and RTL Group
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.56 times more return on investment than RTL Group. However, SentinelOne is 1.79 times less risky than RTL Group. It trades about 0.06 of its potential returns per unit of risk. RTL Group SA is currently generating about 0.02 per unit of risk. If you would invest 1,425 in SentinelOne on August 24, 2024 and sell it today you would earn a total of 1,429 from holding SentinelOne or generate 100.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 72.98% |
| Values | Daily Returns |
SentinelOne vs. RTL Group SA
Performance |
| Timeline |
| SentinelOne |
| RTL Group SA |
SentinelOne and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and RTL Group
The main advantage of trading using opposite SentinelOne and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, RTL Group 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 RTL Group will offset losses from the drop in RTL Group's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| RTL Group vs. ITV PLC ADR | RTL Group vs. iHeartMedia | RTL Group vs. ProSiebenSat1 Media AG | RTL Group vs. TV Azteca SAB |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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