Correlation Between SentinelOne and Teradyne
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Teradyne 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 Teradyne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Teradyne, you can compare the effects of market volatilities on SentinelOne and Teradyne 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 Teradyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Teradyne.
Diversification Opportunities for SentinelOne and Teradyne
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Teradyne is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Teradyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradyne 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 Teradyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradyne has no effect on the direction of SentinelOne i.e., SentinelOne and Teradyne go up and down completely randomly.
Pair Corralation between SentinelOne and Teradyne
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.87 times more return on investment than Teradyne. However, SentinelOne is 1.16 times less risky than Teradyne. It trades about 0.16 of its potential returns per unit of risk. Teradyne is currently generating about -0.24 per unit of risk. If you would invest 2,589 in SentinelOne on August 23, 2024 and sell it today you would earn a total of 224.00 from holding SentinelOne or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Teradyne
Performance |
| Timeline |
| SentinelOne |
| Teradyne |
SentinelOne and Teradyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Teradyne
The main advantage of trading using opposite SentinelOne and Teradyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Teradyne 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 Teradyne will offset losses from the drop in Teradyne's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Teradyne vs. IPG Photonics | Teradyne vs. Ultra Clean Holdings | Teradyne vs. Onto Innovation | Teradyne vs. Cohu 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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