Correlation Between SentinelOne and Hyundai

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

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

Diversification Opportunities for SentinelOne and Hyundai

0.34

Correlation Coefficient

SentinelOne  Hyundai

Weak diversification

The 3 months correlation between SentinelOne and Hyundai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Hyundai Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Motor 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 Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Motor has no effect on the direction of SentinelOne i.e., SentinelOne and Hyundai go up and down completely randomly.

Pair Corralation between SentinelOne and Hyundai

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Hyundai. In addition to that, SentinelOne is 2.01 times more volatile than Hyundai Motor Co. It trades about -0.16 of its total potential returns per unit of risk. Hyundai Motor Co is currently generating about 0.02 per unit of volatility. If you would invest  15,850,000  in Hyundai Motor Co on November 28, 2024 and sell it today you would earn a total of  120,000  from holding Hyundai Motor Co or generate 0.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

SentinelOne  vs.  Hyundai Motor 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 March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Hyundai Motor

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hyundai Motor Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Hyundai 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 Hyundai

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

The idea behind SentinelOne and Hyundai Motor 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.