Correlation Between SentinelOne and Beyond Air
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Beyond 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 Beyond Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Beyond Air, you can compare the effects of market volatilities on SentinelOne and Beyond 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 Beyond Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Beyond Air.
Diversification Opportunities for SentinelOne and Beyond Air
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Beyond is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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 Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of SentinelOne i.e., SentinelOne and Beyond Air go up and down completely randomly.
Pair Corralation between SentinelOne and Beyond Air
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.29 times less return on investment than Beyond Air. But when comparing it to its historical volatility, SentinelOne is 3.03 times less risky than Beyond Air. It trades about 0.17 of its potential returns per unit of risk. Beyond Air is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Beyond Air on November 9, 2024 and sell it today you would earn a total of 2.00 from holding Beyond Air or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Beyond Air
Performance |
| Timeline |
| SentinelOne |
| Beyond Air |
SentinelOne and Beyond Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Beyond Air
The main advantage of trading using opposite SentinelOne and Beyond Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Beyond 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 Beyond Air will offset losses from the drop in Beyond Air's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. PAVmed Series Z | Beyond Air vs. Clearpoint Neuro |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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