Correlation Between Copenhagen Airports and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Copenhagen Airports 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 Copenhagen Airports and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copenhagen Airports AS and SentinelOne, you can compare the effects of market volatilities on Copenhagen Airports 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 Copenhagen Airports with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copenhagen Airports and SentinelOne.
Diversification Opportunities for Copenhagen Airports and SentinelOne
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Copenhagen and SentinelOne is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Copenhagen Airports AS and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Copenhagen Airports 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 Copenhagen Airports AS 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 Copenhagen Airports i.e., Copenhagen Airports and SentinelOne go up and down completely randomly.
Pair Corralation between Copenhagen Airports and SentinelOne
Assuming the 90 days trading horizon Copenhagen Airports AS is expected to under-perform the SentinelOne. But the stock apears to be less risky and, when comparing its historical volatility, Copenhagen Airports AS is 2.6 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 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,611 in SentinelOne on January 26, 2024 and sell it today you would lose (454.00) from holding SentinelOne or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Copenhagen Airports AS vs. SentinelOne
Performance |
| Timeline |
| Copenhagen Airports |
| SentinelOne |
Copenhagen Airports and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copenhagen Airports and SentinelOne
The main advantage of trading using opposite Copenhagen Airports and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copenhagen Airports 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.| Copenhagen Airports vs. cBrain AS | Copenhagen Airports vs. Netcompany Group AS | Copenhagen Airports vs. ChemoMetec AS |
| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated | 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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