Correlation Between SentinelOne and Saniona AB

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

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

Diversification Opportunities for SentinelOne and Saniona AB

-0.71

Correlation Coefficient

SentinelOne  Saniona AB

Pay attention - limited upside

The 3 months correlation between SentinelOne and Saniona is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Saniona AB TO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB TO 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 Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB TO has no effect on the direction of SentinelOne i.e., SentinelOne and Saniona AB go up and down completely randomly.

Pair Corralation between SentinelOne and Saniona AB

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Saniona AB. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.79 times less risky than Saniona AB. The stock trades about -0.17 of its potential returns per unit of risk. The Saniona AB TO is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  160.00  in Saniona AB TO on October 8, 2024 and sell it today you would earn a total of  16.00  from holding Saniona AB TO or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	84.21%
Values	Daily Returns

SentinelOne  vs.  Saniona AB TO

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.

Saniona AB TO

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saniona AB TO are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Saniona AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Saniona AB

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

The idea behind SentinelOne and Saniona AB TO 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.