Correlation Between SentinelOne and Alger Capital
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Alger Capital 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 Alger Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Alger Capital Appreciation, you can compare the effects of market volatilities on SentinelOne and Alger Capital 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 Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Alger Capital.
Diversification Opportunities for SentinelOne and Alger Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and Alger is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Alger Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Capital Apprec 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 Alger Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Capital Apprec has no effect on the direction of SentinelOne i.e., SentinelOne and Alger Capital go up and down completely randomly.
Pair Corralation between SentinelOne and Alger Capital
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.08 times less return on investment than Alger Capital. In addition to that, SentinelOne is 2.1 times more volatile than Alger Capital Appreciation. It trades about 0.17 of its total potential returns per unit of risk. Alger Capital Appreciation is currently generating about 0.38 per unit of volatility. If you would invest 4,700 in Alger Capital Appreciation on September 1, 2024 and sell it today you would earn a total of 478.00 from holding Alger Capital Appreciation or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Alger Capital Appreciation
Performance |
| Timeline |
| SentinelOne |
| Alger Capital Apprec |
SentinelOne and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Alger Capital
The main advantage of trading using opposite SentinelOne and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Alger Capital 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 Alger Capital will offset losses from the drop in Alger Capital's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Alger Capital vs. Federated Institutional High | Alger Capital vs. Metropolitan West High | Alger Capital vs. Siit High Yield | Alger Capital vs. Pace High Yield |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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