Correlation Between SentinelOne and Austevoll Seafood

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Austevoll Seafood 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 Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and Austevoll Seafood ASA, you can compare the effects of market volatilities on SentinelOne and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Austevoll Seafood.

Diversification Opportunities for SentinelOne and Austevoll Seafood

-0.83

Correlation Coefficient

SentinelOne  Austevoll Seafood

Pay attention - limited upside

The 3 months correlation between SentinelOne and Austevoll is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of SentinelOne i.e., SentinelOne and Austevoll Seafood go up and down completely randomly.

Pair Corralation between SentinelOne and Austevoll Seafood

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.33 times more return on investment than Austevoll Seafood. However, SentinelOne is 2.33 times more volatile than Austevoll Seafood ASA. It trades about 0.06 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.0 per unit of risk. If you would invest  1,328  in SentinelOne on January 31, 2024 and sell it today you would earn a total of  842.00  from holding SentinelOne or generate 63.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Austevoll Seafood ASA

SentinelOne

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Austevoll Seafood ASA

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Austevoll Seafood ASA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Austevoll Seafood disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Austevoll Seafood

The main advantage of trading using opposite SentinelOne and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.

The idea behind SentinelOne and Austevoll Seafood ASA 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.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.