Correlation Between SentinelOne and APT Satellite

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

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

Diversification Opportunities for SentinelOne and APT Satellite

0.2

Correlation Coefficient

SentinelOne  APT Satellite

Modest diversification

The 3 months correlation between SentinelOne and APT is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and APT Satellite Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Satellite Holdings 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 APT Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Satellite Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and APT Satellite go up and down completely randomly.

Pair Corralation between SentinelOne and APT Satellite

Taking into account the 90-day investment horizon SentinelOne is expected to generate 10.39 times less return on investment than APT Satellite. In addition to that, SentinelOne is 2.18 times more volatile than APT Satellite Holdings. It trades about 0.01 of its total potential returns per unit of risk. APT Satellite Holdings is currently generating about 0.18 per unit of volatility. If you would invest  24.00  in APT Satellite Holdings on October 7, 2024 and sell it today you would earn a total of  4.00  from holding APT Satellite Holdings or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	24.19%
Values	Daily Returns

SentinelOne  vs.  APT Satellite Holdings

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.

APT Satellite Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days APT Satellite Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking indicators, APT Satellite is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SentinelOne and APT Satellite

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

The idea behind SentinelOne and APT Satellite Holdings 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 Stocks Directory module to find actively traded stocks across global markets.