Correlation Between SentinelOne and ECD Automotive
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ECD Automotive 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 ECD Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ECD Automotive Design, you can compare the effects of market volatilities on SentinelOne and ECD Automotive 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 ECD Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ECD Automotive.
Diversification Opportunities for SentinelOne and ECD Automotive
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and ECD is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ECD Automotive Design in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECD Automotive Design 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 ECD Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECD Automotive Design has no effect on the direction of SentinelOne i.e., SentinelOne and ECD Automotive go up and down completely randomly.
Pair Corralation between SentinelOne and ECD Automotive
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.31 times more return on investment than ECD Automotive. However, SentinelOne is 3.21 times less risky than ECD Automotive. It trades about 0.05 of its potential returns per unit of risk. ECD Automotive Design is currently generating about -0.05 per unit of risk. If you would invest 1,842 in SentinelOne on April 25, 2025 and sell it today you would earn a total of 105.00 from holding SentinelOne or generate 5.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SentinelOne vs. ECD Automotive Design
Performance |
Timeline |
SentinelOne |
ECD Automotive Design |
SentinelOne and ECD Automotive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and ECD Automotive
The main advantage of trading using opposite SentinelOne and ECD Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ECD Automotive 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 ECD Automotive will offset losses from the drop in ECD Automotive's long position.SentinelOne vs. Affirm Holdings | SentinelOne vs. Arqit Quantum | SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Getty Images Holdings |
ECD Automotive vs. ChargePoint Holdings | ECD Automotive vs. Mullen Automotive | ECD Automotive vs. Nio Class A | ECD Automotive vs. Rivian Automotive |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Global Correlations Find global opportunities by holding instruments from different markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |