Correlation Between Atria Oyj and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Atria Oyj 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 Atria Oyj and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atria Oyj A and SentinelOne, you can compare the effects of market volatilities on Atria Oyj 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 Atria Oyj with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atria Oyj and SentinelOne.
Diversification Opportunities for Atria Oyj and SentinelOne
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atria and SentinelOne is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Atria Oyj A and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Atria Oyj 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 Atria Oyj A 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 Atria Oyj i.e., Atria Oyj and SentinelOne go up and down completely randomly.
Pair Corralation between Atria Oyj and SentinelOne
Assuming the 90 days trading horizon Atria Oyj A is expected to generate 0.42 times more return on investment than SentinelOne. However, Atria Oyj A is 2.4 times less risky than SentinelOne. It trades about -0.02 of its potential returns per unit of risk. SentinelOne is currently generating about -0.09 per unit of risk. If you would invest 1,050 in Atria Oyj A on January 20, 2024 and sell it today you would lose (30.00) from holding Atria Oyj A or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Atria Oyj A vs. SentinelOne
Performance |
| Timeline |
| Atria Oyj A |
| SentinelOne |
Atria Oyj and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atria Oyj and SentinelOne
The main advantage of trading using opposite Atria Oyj and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atria Oyj 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.| Atria Oyj vs. Tokmanni Group Oyj | Atria Oyj vs. Kemira Oyj | Atria Oyj vs. Telia Company AB | Atria Oyj vs. Outokumpu Oyj |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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