Correlation Between SentinelOne and Movado

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

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

Diversification Opportunities for SentinelOne and Movado

0.15

Correlation Coefficient

SentinelOne  Movado

Average diversification

The 3 months correlation between SentinelOne and Movado is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Movado Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movado Group 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 Movado. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movado Group has no effect on the direction of SentinelOne i.e., SentinelOne and Movado go up and down completely randomly.

Pair Corralation between SentinelOne and Movado

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Movado. In addition to that, SentinelOne is 1.79 times more volatile than Movado Group. It trades about -0.14 of its total potential returns per unit of risk. Movado Group is currently generating about 0.01 per unit of volatility. If you would invest  2,001  in Movado Group on November 28, 2024 and sell it today you would earn a total of  11.00  from holding Movado Group or generate 0.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Movado Group

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 March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Movado Group

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Movado Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Movado 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 Movado

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

The idea behind SentinelOne and Movado Group 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.