Correlation Between SentinelOne and YPF SA

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

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

Diversification Opportunities for SentinelOne and YPF SA

-0.45

Correlation Coefficient

SentinelOne  YPF SA

Very good diversification

The 3 months correlation between SentinelOne and YPF is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and YPF SA D in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YPF SA D 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 YPF SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YPF SA D has no effect on the direction of SentinelOne i.e., SentinelOne and YPF SA go up and down completely randomly.

Pair Corralation between SentinelOne and YPF SA

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the YPF SA. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.34 times less risky than YPF SA. The stock trades about -0.08 of its potential returns per unit of risk. The YPF SA D is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  2,249,180  in YPF SA D on February 10, 2024 and sell it today you would earn a total of  392,080  from holding YPF SA D or generate 17.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

SentinelOne  vs.  YPF SA D

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

YPF SA D

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YPF SA D are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, YPF SA sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and YPF SA

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

The idea behind SentinelOne and YPF SA D 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.