Correlation Between SentinelOne and Westinghouse Air
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Westinghouse Air 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 Westinghouse Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Westinghouse Air Brake, you can compare the effects of market volatilities on SentinelOne and Westinghouse Air 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 Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Westinghouse Air.
Diversification Opportunities for SentinelOne and Westinghouse Air
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and Westinghouse is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Westinghouse Air Brake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westinghouse Air Brake 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 Westinghouse Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westinghouse Air Brake has no effect on the direction of SentinelOne i.e., SentinelOne and Westinghouse Air go up and down completely randomly.
Pair Corralation between SentinelOne and Westinghouse Air
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.16 times more return on investment than Westinghouse Air. However, SentinelOne is 2.16 times more volatile than Westinghouse Air Brake. It trades about 0.07 of its potential returns per unit of risk. Westinghouse Air Brake is currently generating about 0.14 per unit of risk. If you would invest 1,492 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 1,303 from holding SentinelOne or generate 87.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.42% |
| Values | Daily Returns |
SentinelOne vs. Westinghouse Air Brake
Performance |
| Timeline |
| SentinelOne |
| Westinghouse Air Brake |
SentinelOne and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Westinghouse Air
The main advantage of trading using opposite SentinelOne and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Westinghouse Air 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 Westinghouse Air will offset losses from the drop in Westinghouse Air's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Westinghouse Air vs. Union Pacific | Westinghouse Air vs. Superior Plus Corp | Westinghouse Air vs. NMI Holdings | Westinghouse Air vs. Origin Agritech |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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