Correlation Between SentinelOne and CVC Technologies

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

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

Diversification Opportunities for SentinelOne and CVC Technologies

-0.35

Correlation Coefficient

SentinelOne  CVC Technologies

Very good diversification

The 3 months correlation between SentinelOne and CVC is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CVC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVC Technologies 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 CVC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVC Technologies has no effect on the direction of SentinelOne i.e., SentinelOne and CVC Technologies go up and down completely randomly.

Pair Corralation between SentinelOne and CVC Technologies

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.62 times more return on investment than CVC Technologies. However, SentinelOne is 1.62 times more volatile than CVC Technologies. It trades about 0.0 of its potential returns per unit of risk. CVC Technologies is currently generating about -0.02 per unit of risk. If you would invest  2,533  in SentinelOne on October 8, 2024 and sell it today you would lose (252.00) from holding SentinelOne or give up 9.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.98%
Values	Daily Returns

SentinelOne  vs.  CVC Technologies

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.

CVC Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CVC Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, CVC Technologies is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with SentinelOne and CVC Technologies

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

The idea behind SentinelOne and CVC Technologies 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..