Correlation Between SentinelOne and Artivion

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

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

Diversification Opportunities for SentinelOne and Artivion

0.14

Correlation Coefficient

SentinelOne  Artivion

Average diversification

The 3 months correlation between SentinelOne and Artivion is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion 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 Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of SentinelOne i.e., SentinelOne and Artivion go up and down completely randomly.

Pair Corralation between SentinelOne and Artivion

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.69 times more return on investment than Artivion. However, SentinelOne is 1.69 times more volatile than Artivion. It trades about -0.02 of its potential returns per unit of risk. Artivion is currently generating about -0.08 per unit of risk. If you would invest  2,443  in SentinelOne on June 29, 2024 and sell it today you would lose (47.00) from holding SentinelOne or give up 1.92% of portfolio value over 90 days.

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

SentinelOne  vs.  Artivion

SentinelOne

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SentinelOne unveiled solid returns over the last few months and may actually be approaching a breakup point.

Artivion

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Artivion are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Artivion is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SentinelOne and Artivion

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

The idea behind SentinelOne and Artivion 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.