Correlation Between SentinelOne and Xencor
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Xencor 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 Xencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Xencor Inc, you can compare the effects of market volatilities on SentinelOne and Xencor 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 Xencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Xencor.
Diversification Opportunities for SentinelOne and Xencor
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Xencor is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Xencor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xencor Inc 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 Xencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xencor Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Xencor go up and down completely randomly.
Pair Corralation between SentinelOne and Xencor
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.2 times less return on investment than Xencor. In addition to that, SentinelOne is 1.22 times more volatile than Xencor Inc. It trades about 0.13 of its total potential returns per unit of risk. Xencor Inc is currently generating about 0.36 per unit of volatility. If you would invest 2,157 in Xencor Inc on August 28, 2024 and sell it today you would earn a total of 373.00 from holding Xencor Inc or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Xencor Inc
Performance |
| Timeline |
| SentinelOne |
| Xencor Inc |
SentinelOne and Xencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Xencor
The main advantage of trading using opposite SentinelOne and Xencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Xencor 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 Xencor will offset losses from the drop in Xencor's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Xencor vs. Edgewise Therapeutics | Xencor vs. Keros Therapeutics | Xencor vs. Monte Rosa Therapeutics | Xencor vs. Mineralys Therapeutics, Common |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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