Correlation Between Kinaxis and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Kinaxis 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 Kinaxis and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinaxis and SentinelOne, you can compare the effects of market volatilities on Kinaxis 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 Kinaxis with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinaxis and SentinelOne.
Diversification Opportunities for Kinaxis and SentinelOne
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinaxis and SentinelOne is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kinaxis and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Kinaxis 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 Kinaxis 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 Kinaxis i.e., Kinaxis and SentinelOne go up and down completely randomly.
Pair Corralation between Kinaxis and SentinelOne
Assuming the 90 days trading horizon Kinaxis is expected to under-perform the SentinelOne. But the stock apears to be less risky and, when comparing its historical volatility, Kinaxis is 1.88 times less risky than SentinelOne. The stock trades about -0.04 of its potential returns per unit of risk. The SentinelOne is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,488 in SentinelOne on January 24, 2024 and sell it today you would earn a total of 559.00 from holding SentinelOne or generate 37.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.51% |
| Values | Daily Returns |
Kinaxis vs. SentinelOne
Performance |
| Timeline |
| Kinaxis |
| SentinelOne |
Kinaxis and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinaxis and SentinelOne
The main advantage of trading using opposite Kinaxis and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinaxis 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.| Kinaxis vs. Plurilock Security | Kinaxis vs. Kwesst Micro Systems | Kinaxis vs. Perimeter Medical Imaging | Kinaxis vs. Jericho Oil Corp |
| SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Cloudflare |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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