Correlation Between SentinelOne and ScandiDos
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ScandiDos 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 ScandiDos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ScandiDos AB, you can compare the effects of market volatilities on SentinelOne and ScandiDos 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 ScandiDos. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ScandiDos.
Diversification Opportunities for SentinelOne and ScandiDos
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and ScandiDos is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ScandiDos AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScandiDos 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 ScandiDos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScandiDos AB has no effect on the direction of SentinelOne i.e., SentinelOne and ScandiDos go up and down completely randomly.
Pair Corralation between SentinelOne and ScandiDos
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.85 times more return on investment than ScandiDos. However, SentinelOne is 1.17 times less risky than ScandiDos. It trades about 0.06 of its potential returns per unit of risk. ScandiDos AB is currently generating about 0.0 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 | Very Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
SentinelOne vs. ScandiDos AB
Performance |
| Timeline |
| SentinelOne |
| ScandiDos AB |
SentinelOne and ScandiDos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ScandiDos
The main advantage of trading using opposite SentinelOne and ScandiDos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ScandiDos 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 ScandiDos will offset losses from the drop in ScandiDos' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| ScandiDos vs. Scibase AB | ScandiDos vs. Arcoma AB | ScandiDos vs. Lidds AB | ScandiDos vs. Clinical Laserthermia Systems |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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