Correlation Between Apollo Commercial and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Apollo Commercial and SentinelOne 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 Apollo Commercial and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Commercial Real and SentinelOne, you can compare the effects of market volatilities on Apollo Commercial and SentinelOne 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 Apollo Commercial with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Commercial and SentinelOne.
Diversification Opportunities for Apollo Commercial and SentinelOne
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and SentinelOne is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Commercial Real and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Apollo Commercial 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 Apollo Commercial Real are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Apollo Commercial i.e., Apollo Commercial and SentinelOne go up and down completely randomly.
Pair Corralation between Apollo Commercial and SentinelOne
Considering the 90-day investment horizon Apollo Commercial is expected to generate 1.51 times less return on investment than SentinelOne. But when comparing it to its historical volatility, Apollo Commercial Real is 2.16 times less risky than SentinelOne. It trades about 0.08 of its potential returns per unit of risk. SentinelOne is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,687 in SentinelOne on December 30, 2023 and sell it today you would earn a total of 644.00 from holding SentinelOne or generate 38.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Apollo Commercial Real vs. SentinelOne
Performance |
Timeline |
Apollo Commercial Real |
SentinelOne |
Apollo Commercial and SentinelOne Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apollo Commercial and SentinelOne
The main advantage of trading using opposite Apollo Commercial and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Commercial position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.Apollo Commercial vs. AG Mortgage Investment | Apollo Commercial vs. AG Mortgage Investment | Apollo Commercial vs. AG Mortgage Investment | Apollo Commercial vs. AG Mortgage Investment |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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