Correlation Between OneSpan and SentinelOne

Can any of the company-specific risk be diversified away by investing in both OneSpan and SentinelOne 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 OneSpan and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OneSpan and SentinelOne, you can compare the effects of market volatilities on OneSpan and SentinelOne 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 OneSpan with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpan and SentinelOne.

Diversification Opportunities for OneSpan and SentinelOne

-0.14

Correlation Coefficient

OneSpan  SentinelOne

Good diversification

The 3 months correlation between OneSpan and SentinelOne is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding OneSpan and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and OneSpan 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 OneSpan are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of OneSpan i.e., OneSpan and SentinelOne go up and down completely randomly.

Pair Corralation between OneSpan and SentinelOne

Given the investment horizon of 90 days OneSpan is expected to generate 1.21 times more return on investment than SentinelOne. However, OneSpan is 1.21 times more volatile than SentinelOne. It trades about 0.07 of its potential returns per unit of risk. SentinelOne is currently generating about -0.17 per unit of risk. If you would invest  1,859  in OneSpan on October 8, 2024 and sell it today you would earn a total of  55.00  from holding OneSpan or generate 2.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

OneSpan  vs.  SentinelOne

OneSpan

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in OneSpan are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, OneSpan displayed solid returns over the last few months and may actually be approaching a breakup point.

SentinelOne

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with OneSpan and SentinelOne

The main advantage of trading using opposite OneSpan and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpan position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.

The idea behind OneSpan and SentinelOne pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.