Correlation Between SentinelOne and Jiangsu Yike

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

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

Diversification Opportunities for SentinelOne and Jiangsu Yike

-0.14

Correlation Coefficient

SentinelOne  Jiangsu Yike

Good diversification

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

Pair Corralation between SentinelOne and Jiangsu Yike

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.92 times more return on investment than Jiangsu Yike. However, SentinelOne is 1.09 times less risky than Jiangsu Yike. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Yike Food is currently generating about 0.01 per unit of risk. If you would invest  1,605  in SentinelOne on October 8, 2024 and sell it today you would earn a total of  676.00  from holding SentinelOne or generate 42.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.22%
Values	Daily Returns

SentinelOne  vs.  Jiangsu Yike Food

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.

Jiangsu Yike Food

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jiangsu Yike Food has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jiangsu Yike 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 Jiangsu Yike

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

The idea behind SentinelOne and Jiangsu Yike Food 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.