Correlation Between SentinelOne and Citic Offshore

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

By analyzing existing cross correlation between SentinelOne and Citic Offshore Helicopter, you can compare the effects of market volatilities on SentinelOne and Citic Offshore 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 Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Citic Offshore.

Diversification Opportunities for SentinelOne and Citic Offshore

-0.01

Correlation Coefficient

SentinelOne  Citic Offshore

Good diversification

The 3 months correlation between SentinelOne and Citic is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter 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 Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of SentinelOne i.e., SentinelOne and Citic Offshore go up and down completely randomly.

Pair Corralation between SentinelOne and Citic Offshore

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Citic Offshore. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.24 times less risky than Citic Offshore. The stock trades about -0.07 of its potential returns per unit of risk. The Citic Offshore Helicopter is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2,575  in Citic Offshore Helicopter on December 24, 2024 and sell it today you would lose (104.00) from holding Citic Offshore Helicopter or give up 4.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.08%
Values	Daily Returns

SentinelOne  vs.  Citic Offshore Helicopter

SentinelOne

Risk-Adjusted Performance

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 latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Citic Offshore Helicopter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citic Offshore Helicopter has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Citic Offshore is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Citic Offshore

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

The idea behind SentinelOne and Citic Offshore Helicopter 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.