Correlation Between PERSIMMON PLC and SentinelOne

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

PERSIMMON PLC -  vs.  SentinelOne

 Performance 
       Timeline  
PERSIMMON PLC - 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days PERSIMMON PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PERSIMMON PLC is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
SentinelOne 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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.
The idea behind PERSIMMON PLC and SentinelOne pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Fundamental Analysis
View fundamental data based on most recent published financial statements
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets