Correlation Between SentinelOne and Skanska AB
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Skanska 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 Skanska AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Skanska AB, you can compare the effects of market volatilities on SentinelOne and Skanska 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 Skanska AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Skanska AB.
Diversification Opportunities for SentinelOne and Skanska AB
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and Skanska is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Skanska AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skanska 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 Skanska AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skanska AB has no effect on the direction of SentinelOne i.e., SentinelOne and Skanska AB go up and down completely randomly.
Pair Corralation between SentinelOne and Skanska AB
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.37 times more return on investment than Skanska AB. However, SentinelOne is 1.37 times more volatile than Skanska AB. It trades about 0.06 of its potential returns per unit of risk. Skanska AB is currently generating about 0.03 per unit of risk. If you would invest 1,425 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 1,429 from holding SentinelOne or generate 100.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.09% |
| Values | Daily Returns |
SentinelOne vs. Skanska AB
Performance |
| Timeline |
| SentinelOne |
| Skanska AB |
SentinelOne and Skanska AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Skanska AB
The main advantage of trading using opposite SentinelOne and Skanska AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Skanska 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 Skanska AB will offset losses from the drop in Skanska AB's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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