Correlation Between SentinelOne and Alfa Holdings
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Alfa Holdings 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 Alfa Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Alfa Holdings SA, you can compare the effects of market volatilities on SentinelOne and Alfa Holdings 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 Alfa Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Alfa Holdings.
Diversification Opportunities for SentinelOne and Alfa Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Alfa is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Alfa Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfa Holdings 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 Alfa Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfa Holdings SA has no effect on the direction of SentinelOne i.e., SentinelOne and Alfa Holdings go up and down completely randomly.
Pair Corralation between SentinelOne and Alfa Holdings
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.51 times more return on investment than Alfa Holdings. However, SentinelOne is 1.96 times less risky than Alfa Holdings. It trades about 0.13 of its potential returns per unit of risk. Alfa Holdings SA is currently generating about -0.32 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
SentinelOne vs. Alfa Holdings SA
Performance |
| Timeline |
| SentinelOne |
| Alfa Holdings SA |
SentinelOne and Alfa Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Alfa Holdings
The main advantage of trading using opposite SentinelOne and Alfa Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Alfa Holdings 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 Alfa Holdings will offset losses from the drop in Alfa Holdings' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Alfa Holdings vs. Ambipar Participaes e | Alfa Holdings vs. Movida Participaes SA | Alfa Holdings vs. Banco BTG Pactual | Alfa Holdings vs. BTG Pactual Logstica |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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