Correlation Between Aker ASA and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Aker ASA 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 Aker ASA and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker ASA and SentinelOne, you can compare the effects of market volatilities on Aker ASA 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 Aker ASA with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker ASA and SentinelOne.
Diversification Opportunities for Aker ASA and SentinelOne
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aker and SentinelOne is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aker ASA and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Aker ASA 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 Aker ASA 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 Aker ASA i.e., Aker ASA and SentinelOne go up and down completely randomly.
Pair Corralation between Aker ASA and SentinelOne
Assuming the 90 days trading horizon Aker ASA is expected to under-perform the SentinelOne. But the stock apears to be less risky and, when comparing its historical volatility, Aker ASA is 2.67 times less risky than SentinelOne. The stock trades about 0.0 of its potential returns per unit of risk. The SentinelOne is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,598 in SentinelOne on January 18, 2024 and sell it today you would earn a total of 491.00 from holding SentinelOne or generate 30.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker ASA vs. SentinelOne
Performance |
| Timeline |
| Aker ASA |
| SentinelOne |
Aker ASA and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker ASA and SentinelOne
The main advantage of trading using opposite Aker ASA and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker ASA 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.| Aker ASA vs. Storebrand ASA | Aker ASA vs. Aker Solutions ASA | Aker ASA vs. DnB ASA | Aker ASA vs. Orkla ASA |
| SentinelOne vs. Cloudflare | SentinelOne vs. Okta Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Nutanix |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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