Correlation Between SentinelOne and Yesil Yapi

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

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

Diversification Opportunities for SentinelOne and Yesil Yapi

-0.29

Correlation Coefficient

SentinelOne  Yesil Yapi

Very good diversification

The 3 months correlation between SentinelOne and Yesil is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of SentinelOne i.e., SentinelOne and Yesil Yapi go up and down completely randomly.

Pair Corralation between SentinelOne and Yesil Yapi

Taking into account the 90-day investment horizon SentinelOne is expected to generate 42.54 times less return on investment than Yesil Yapi. But when comparing it to its historical volatility, SentinelOne is 1.32 times less risky than Yesil Yapi. It trades about 0.01 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  158.00  in Yesil Yapi Endustrisi on October 7, 2024 and sell it today you would earn a total of  81.00  from holding Yesil Yapi Endustrisi or generate 51.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

SentinelOne  vs.  Yesil Yapi Endustrisi

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.

Yesil Yapi Endustrisi

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yesil Yapi Endustrisi are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yesil Yapi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Yesil Yapi

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

The idea behind SentinelOne and Yesil Yapi Endustrisi 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.