Correlation Between SentinelOne and Beijing Tong
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Beijing Tong 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 Beijing Tong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Beijing Tong Ren, you can compare the effects of market volatilities on SentinelOne and Beijing Tong 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 Beijing Tong. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Beijing Tong.
Diversification Opportunities for SentinelOne and Beijing Tong
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Beijing is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Beijing Tong Ren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tong Ren 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 Beijing Tong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tong Ren has no effect on the direction of SentinelOne i.e., SentinelOne and Beijing Tong go up and down completely randomly.
Pair Corralation between SentinelOne and Beijing Tong
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.17 times less return on investment than Beijing Tong. In addition to that, SentinelOne is 1.02 times more volatile than Beijing Tong Ren. It trades about 0.04 of its total potential returns per unit of risk. Beijing Tong Ren is currently generating about 0.05 per unit of volatility. If you would invest 58.00 in Beijing Tong Ren on November 5, 2024 and sell it today you would earn a total of 43.00 from holding Beijing Tong Ren or generate 74.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
SentinelOne vs. Beijing Tong Ren
Performance |
| Timeline |
| SentinelOne |
| Beijing Tong Ren |
SentinelOne and Beijing Tong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Beijing Tong
The main advantage of trading using opposite SentinelOne and Beijing Tong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Beijing Tong 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 Beijing Tong will offset losses from the drop in Beijing Tong's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Beijing Tong vs. The Trade Desk | Beijing Tong vs. Solstad Offshore ASA | Beijing Tong vs. WT OFFSHORE | Beijing Tong vs. AEGEAN AIRLINES |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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