Correlation Between SentinelOne and SUN HUNG
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SUN HUNG 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 SUN HUNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SUN HUNG KAI, you can compare the effects of market volatilities on SentinelOne and SUN HUNG 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 SUN HUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SUN HUNG.
Diversification Opportunities for SentinelOne and SUN HUNG
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and SUN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SUN HUNG KAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN HUNG KAI 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 SUN HUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN HUNG KAI has no effect on the direction of SentinelOne i.e., SentinelOne and SUN HUNG go up and down completely randomly.
Pair Corralation between SentinelOne and SUN HUNG
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.19 times less return on investment than SUN HUNG. But when comparing it to its historical volatility, SentinelOne is 1.04 times less risky than SUN HUNG. It trades about 0.02 of its potential returns per unit of risk. SUN HUNG KAI is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 585.00 in SUN HUNG KAI on August 27, 2024 and sell it today you would earn a total of 340.00 from holding SUN HUNG KAI or generate 58.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.95% |
| Values | Daily Returns |
SentinelOne vs. SUN HUNG KAI
Performance |
| Timeline |
| SentinelOne |
| SUN HUNG KAI |
SentinelOne and SUN HUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and SUN HUNG
The main advantage of trading using opposite SentinelOne and SUN HUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SUN HUNG 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 SUN HUNG will offset losses from the drop in SUN HUNG's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| SUN HUNG vs. EIDESVIK OFFSHORE NK | SUN HUNG vs. UNITED RENTALS | SUN HUNG vs. WILLIS LEASE FIN | SUN HUNG vs. Check Point Software |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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