Correlation Between SentinelOne and Xiamen Amoytop

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

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

Diversification Opportunities for SentinelOne and Xiamen Amoytop

-0.16

Correlation Coefficient

SentinelOne  Xiamen Amoytop

Good diversification

The 3 months correlation between SentinelOne and Xiamen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Xiamen Amoytop Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Amoytop Biotech 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 Xiamen Amoytop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Amoytop Biotech has no effect on the direction of SentinelOne i.e., SentinelOne and Xiamen Amoytop go up and down completely randomly.

Pair Corralation between SentinelOne and Xiamen Amoytop

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Xiamen Amoytop. In addition to that, SentinelOne is 1.23 times more volatile than Xiamen Amoytop Biotech. It trades about -0.1 of its total potential returns per unit of risk. Xiamen Amoytop Biotech is currently generating about 0.08 per unit of volatility. If you would invest  7,460  in Xiamen Amoytop Biotech on December 24, 2024 and sell it today you would earn a total of  635.00  from holding Xiamen Amoytop Biotech or generate 8.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.08%
Values	Daily Returns

SentinelOne  vs.  Xiamen Amoytop Biotech

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.

Xiamen Amoytop Biotech

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Xiamen Amoytop Biotech are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Xiamen Amoytop may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with SentinelOne and Xiamen Amoytop

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

The idea behind SentinelOne and Xiamen Amoytop Biotech 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.