Correlation Between SentinelOne and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and CBAK Energy 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 CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and CBAK Energy Technology, you can compare the effects of market volatilities on SentinelOne and CBAK Energy 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 CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and CBAK Energy.
Diversification Opportunities for SentinelOne and CBAK Energy
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and CBAK is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology 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 CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of SentinelOne i.e., SentinelOne and CBAK Energy go up and down completely randomly.
Pair Corralation between SentinelOne and CBAK Energy
Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.19 times less return on investment than CBAK Energy. But when comparing it to its historical volatility, SentinelOne is 1.64 times less risky than CBAK Energy. It trades about 0.07 of its potential returns per unit of risk. CBAK Energy Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 72.00 in CBAK Energy Technology on April 22, 2025 and sell it today you would earn a total of 39.00 from holding CBAK Energy Technology or generate 54.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. CBAK Energy Technology
Performance |
| Timeline |
| SentinelOne |
| CBAK Energy Technology |
SentinelOne and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and CBAK Energy
The main advantage of trading using opposite SentinelOne and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| SentinelOne vs. Palantir Technologies Class | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Oracle | SentinelOne vs. CoreWeave, Class A |
| CBAK Energy vs. Polar Power | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Eos Energy Enterprises |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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