Correlation Between SentinelOne and Polska Grupa

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

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

Diversification Opportunities for SentinelOne and Polska Grupa

0.0

Correlation Coefficient

SentinelOne  Polska Grupa

Pay attention - limited upside

The 3 months correlation between SentinelOne and Polska is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Polska Grupa Odlewnicza in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polska Grupa Odlewnicza 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 Polska Grupa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polska Grupa Odlewnicza has no effect on the direction of SentinelOne i.e., SentinelOne and Polska Grupa go up and down completely randomly.

Pair Corralation between SentinelOne and Polska Grupa

If you would invest (100.00) in Polska Grupa Odlewnicza on October 8, 2024 and sell it today you would earn a total of  100.00  from holding Polska Grupa Odlewnicza or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SentinelOne  vs.  Polska Grupa Odlewnicza

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.

Polska Grupa Odlewnicza

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polska Grupa Odlewnicza has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Polska Grupa is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Polska Grupa

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

The idea behind SentinelOne and Polska Grupa Odlewnicza 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.