Correlation Between SentinelOne and Limin Chemical

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

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

Diversification Opportunities for SentinelOne and Limin Chemical

-0.56

Correlation Coefficient

SentinelOne  Limin Chemical

Excellent diversification

The 3 months correlation between SentinelOne and Limin is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Limin Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limin Chemical 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 Limin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limin Chemical has no effect on the direction of SentinelOne i.e., SentinelOne and Limin Chemical go up and down completely randomly.

Pair Corralation between SentinelOne and Limin Chemical

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Limin Chemical. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.03 times less risky than Limin Chemical. The stock trades about -0.11 of its potential returns per unit of risk. The Limin Chemical Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  800.00  in Limin Chemical Co on December 24, 2024 and sell it today you would earn a total of  183.00  from holding Limin Chemical Co or generate 22.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.67%
Values	Daily Returns

SentinelOne  vs.  Limin Chemical Co

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 unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Limin Chemical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Limin Chemical Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Limin Chemical sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Limin Chemical

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

The idea behind SentinelOne and Limin Chemical Co 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.