Correlation Between SentinelOne and Thyssenkrupp
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Thyssenkrupp 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 Thyssenkrupp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and thyssenkrupp AG, you can compare the effects of market volatilities on SentinelOne and Thyssenkrupp 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 Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Thyssenkrupp.
Diversification Opportunities for SentinelOne and Thyssenkrupp
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Thyssenkrupp is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG 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 Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of SentinelOne i.e., SentinelOne and Thyssenkrupp go up and down completely randomly.
Pair Corralation between SentinelOne and Thyssenkrupp
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.26 times less return on investment than Thyssenkrupp. But when comparing it to its historical volatility, SentinelOne is 1.38 times less risky than Thyssenkrupp. It trades about 0.17 of its potential returns per unit of risk. thyssenkrupp AG is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 319.00 in thyssenkrupp AG on September 1, 2024 and sell it today you would earn a total of 71.00 from holding thyssenkrupp AG or generate 22.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
SentinelOne vs. thyssenkrupp AG
Performance |
| Timeline |
| SentinelOne |
| thyssenkrupp AG |
SentinelOne and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Thyssenkrupp
The main advantage of trading using opposite SentinelOne and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Thyssenkrupp vs. SIVERS SEMICONDUCTORS AB | Thyssenkrupp vs. Darden Restaurants | Thyssenkrupp vs. Reliance Steel Aluminum | Thyssenkrupp vs. Q2M Managementberatung AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |