Correlation Between SentinelOne and Sandvik AB
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Sandvik AB 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 Sandvik AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Sandvik AB, you can compare the effects of market volatilities on SentinelOne and Sandvik AB 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 Sandvik AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Sandvik AB.
Diversification Opportunities for SentinelOne and Sandvik AB
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Sandvik is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Sandvik AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandvik 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 Sandvik AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandvik AB has no effect on the direction of SentinelOne i.e., SentinelOne and Sandvik AB go up and down completely randomly.
Pair Corralation between SentinelOne and Sandvik AB
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.43 times more return on investment than Sandvik AB. However, SentinelOne is 2.43 times more volatile than Sandvik AB. It trades about 0.07 of its potential returns per unit of risk. Sandvik AB 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 Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
SentinelOne vs. Sandvik AB
Performance |
| Timeline |
| SentinelOne |
| Sandvik AB |
SentinelOne and Sandvik AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Sandvik AB
The main advantage of trading using opposite SentinelOne and Sandvik AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Sandvik AB 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 Sandvik AB will offset losses from the drop in Sandvik AB's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Sandvik AB vs. Samhllsbyggnadsbolaget i Norden | Sandvik AB vs. Sinch AB | Sandvik AB vs. Embracer Group AB | Sandvik AB vs. Evolution AB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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