Correlation Between PERSIMMON PLC and SentinelOne
Can any of the company-specific risk be diversified away by investing in both PERSIMMON PLC 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 PERSIMMON PLC and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PERSIMMON PLC and SentinelOne, you can compare the effects of market volatilities on PERSIMMON PLC 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 PERSIMMON PLC with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of PERSIMMON PLC and SentinelOne.
Diversification Opportunities for PERSIMMON PLC and SentinelOne
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PERSIMMON and SentinelOne is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding PERSIMMON PLC - and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and PERSIMMON PLC 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 PERSIMMON PLC 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 PERSIMMON PLC i.e., PERSIMMON PLC and SentinelOne go up and down completely randomly.
Pair Corralation between PERSIMMON PLC and SentinelOne
Assuming the 90 days trading horizon PERSIMMON PLC is expected to generate 0.44 times more return on investment than SentinelOne. However, PERSIMMON PLC is 2.28 times less risky than SentinelOne. It trades about -0.07 of its potential returns per unit of risk. SentinelOne is currently generating about -0.17 per unit of risk. If you would invest 1,543 in PERSIMMON PLC on December 29, 2023 and sell it today you would lose (55.00) from holding PERSIMMON PLC or give up 3.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PERSIMMON PLC - vs. SentinelOne
Performance |
Timeline |
PERSIMMON PLC - |
SentinelOne |
PERSIMMON PLC and SentinelOne Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PERSIMMON PLC and SentinelOne
The main advantage of trading using opposite PERSIMMON PLC and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PERSIMMON PLC 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.PERSIMMON PLC vs. WillScot Mobile Mini | PERSIMMON PLC vs. Perdoceo Education | PERSIMMON PLC vs. CENTURIA OFFICE REIT | PERSIMMON PLC vs. Waste Management |
SentinelOne vs. Global Blue Group | SentinelOne vs. Aurora Mobile | SentinelOne vs. Marqeta | SentinelOne vs. Nextnav Acquisition Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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