Correlation Between ROCKWOOL International and SentinelOne
Can any of the company-specific risk be diversified away by investing in both ROCKWOOL International 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 ROCKWOOL International and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ROCKWOOL International AS and SentinelOne, you can compare the effects of market volatilities on ROCKWOOL International 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 ROCKWOOL International with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROCKWOOL International and SentinelOne.
Diversification Opportunities for ROCKWOOL International and SentinelOne
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ROCKWOOL and SentinelOne is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ROCKWOOL International AS and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and ROCKWOOL International 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 ROCKWOOL International 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 ROCKWOOL International i.e., ROCKWOOL International and SentinelOne go up and down completely randomly.
Pair Corralation between ROCKWOOL International and SentinelOne
Assuming the 90 days trading horizon ROCKWOOL International AS is expected to generate 0.57 times more return on investment than SentinelOne. However, ROCKWOOL International AS is 1.76 times less risky than SentinelOne. It trades about 0.03 of its potential returns per unit of risk. SentinelOne is currently generating about 0.01 per unit of risk. If you would invest 177,080 in ROCKWOOL International AS on January 26, 2024 and sell it today you would earn a total of 52,920 from holding ROCKWOOL International AS or generate 29.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
ROCKWOOL International AS vs. SentinelOne
Performance |
| Timeline |
| ROCKWOOL International |
| SentinelOne |
ROCKWOOL International and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROCKWOOL International and SentinelOne
The main advantage of trading using opposite ROCKWOOL International and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROCKWOOL International 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.| ROCKWOOL International vs. Per Aarsleff Holding | ROCKWOOL International vs. Matas AS | ROCKWOOL International vs. DFDS AS | ROCKWOOL International vs. ALK Abell 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges |