Correlation Between SentinelOne and Hamilton Beach

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Can any of the company-specific risk be diversified away by investing in both SentinelOne and Hamilton Beach 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 Hamilton Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Hamilton Beach Brands, you can compare the effects of market volatilities on SentinelOne and Hamilton Beach 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 Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Hamilton Beach.

Diversification Opportunities for SentinelOne and Hamilton Beach

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between SentinelOne and Hamilton is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Hamilton Beach Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands 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 Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of SentinelOne i.e., SentinelOne and Hamilton Beach go up and down completely randomly.

Pair Corralation between SentinelOne and Hamilton Beach

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Hamilton Beach. In addition to that, SentinelOne is 1.04 times more volatile than Hamilton Beach Brands. It trades about -0.21 of its total potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.28 per unit of volatility. If you would invest  1,926  in Hamilton Beach Brands on December 29, 2023 and sell it today you would earn a total of  532.00  from holding Hamilton Beach Brands or generate 27.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SentinelOne  vs.  Hamilton Beach Brands

 Performance 
       Timeline  
SentinelOne 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
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 April 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Hamilton Beach Brands 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, Hamilton Beach sustained solid returns over the last few months and may actually be approaching a breakup point.

SentinelOne and Hamilton Beach Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SentinelOne and Hamilton Beach

The main advantage of trading using opposite SentinelOne and Hamilton Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Hamilton Beach 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 Hamilton Beach will offset losses from the drop in Hamilton Beach's long position.
The idea behind SentinelOne and Hamilton Beach Brands 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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