Correlation Between SentinelOne and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Singapore Airlines 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 Singapore Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Singapore Airlines Limited, you can compare the effects of market volatilities on SentinelOne and Singapore Airlines 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 Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Singapore Airlines.
Diversification Opportunities for SentinelOne and Singapore Airlines
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and Singapore is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Singapore Airlines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines 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 Singapore Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Airlines has no effect on the direction of SentinelOne i.e., SentinelOne and Singapore Airlines go up and down completely randomly.
Pair Corralation between SentinelOne and Singapore Airlines
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.8 times more return on investment than Singapore Airlines. However, SentinelOne is 1.8 times more volatile than Singapore Airlines Limited. It trades about 0.12 of its potential returns per unit of risk. Singapore Airlines Limited is currently generating about 0.09 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Singapore Airlines Limited
Performance |
| Timeline |
| SentinelOne |
| Singapore Airlines |
SentinelOne and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Singapore Airlines
The main advantage of trading using opposite SentinelOne and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Singapore Airlines 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 Singapore Airlines will offset losses from the drop in Singapore Airlines' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Singapore Airlines vs. RYANAIR HLDGS ADR | Singapore Airlines vs. Southwest Airlines Co | Singapore Airlines vs. Superior Plus Corp | Singapore Airlines vs. NMI Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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