Correlation Between SentinelOne and First Majestic
Can any of the company-specific risk be diversified away by investing in both SentinelOne and First Majestic 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 SentinelOne and First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and First Majestic Silver, you can compare the effects of market volatilities on SentinelOne and First Majestic 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 SentinelOne with a short position of First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and First Majestic.
Diversification Opportunities for SentinelOne and First Majestic
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and First is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver and SentinelOne 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 SentinelOne are associated (or correlated) with First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of SentinelOne i.e., SentinelOne and First Majestic go up and down completely randomly.
Pair Corralation between SentinelOne and First Majestic
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.77 times more return on investment than First Majestic. However, SentinelOne is 1.3 times less risky than First Majestic. It trades about -0.16 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.28 per unit of risk. If you would invest 2,291 in SentinelOne on February 6, 2024 and sell it today you would lose (166.00) from holding SentinelOne or give up 7.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SentinelOne vs. First Majestic Silver
Performance |
Timeline |
SentinelOne |
First Majestic Silver |
SentinelOne and First Majestic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and First Majestic
The main advantage of trading using opposite SentinelOne and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, First Majestic 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 First Majestic will offset losses from the drop in First Majestic's long position.SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
First Majestic vs. Aya Gold Silver | First Majestic vs. Silvercorp Metals | First Majestic vs. Discovery Metals Corp | First Majestic vs. Santacruz Silv |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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