Correlation Between SentinelOne and Smartgiant Technology

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

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

Diversification Opportunities for SentinelOne and Smartgiant Technology

0.55

Correlation Coefficient

SentinelOne  Smartgiant Technology

Very weak diversification

The 3 months correlation between SentinelOne and Smartgiant is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Smartgiant Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartgiant Technology 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 Smartgiant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartgiant Technology has no effect on the direction of SentinelOne i.e., SentinelOne and Smartgiant Technology go up and down completely randomly.

Pair Corralation between SentinelOne and Smartgiant Technology

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Smartgiant Technology. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.93 times less risky than Smartgiant Technology. The stock trades about 0.0 of its potential returns per unit of risk. The Smartgiant Technology Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,922  in Smartgiant Technology Co on October 22, 2024 and sell it today you would earn a total of  2,377  from holding Smartgiant Technology Co or generate 123.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.8%
Values	Daily Returns

SentinelOne  vs.  Smartgiant Technology Co

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 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.

Smartgiant Technology

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Smartgiant Technology Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Smartgiant Technology 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 Smartgiant Technology

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

The idea behind SentinelOne and Smartgiant Technology 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.