Correlation Between Lumen Technologies and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Lumen Technologies 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 Lumen Technologies and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumen Technologies and SentinelOne, you can compare the effects of market volatilities on Lumen Technologies 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 Lumen Technologies with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies and SentinelOne.
Diversification Opportunities for Lumen Technologies and SentinelOne
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumen and SentinelOne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Lumen Technologies 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 Lumen Technologies 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 Lumen Technologies i.e., Lumen Technologies and SentinelOne go up and down completely randomly.
Pair Corralation between Lumen Technologies and SentinelOne
If you would invest (100.00) in Lumen Technologies on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Lumen Technologies or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lumen Technologies vs. SentinelOne
Performance |
| Timeline |
| Lumen Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SentinelOne |
Lumen Technologies and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumen Technologies and SentinelOne
The main advantage of trading using opposite Lumen Technologies and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumen Technologies 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.| Lumen Technologies vs. Eldorado Gold Corp | Lumen Technologies vs. SFL Corporation | Lumen Technologies vs. Avarone Metals | Lumen Technologies vs. Willscot Mobile Mini |
| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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