Correlation Between SentinelOne and Aristotle Growth
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Aristotle Growth 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 Aristotle Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Aristotle Growth Equity, you can compare the effects of market volatilities on SentinelOne and Aristotle Growth 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 Aristotle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Aristotle Growth.
Diversification Opportunities for SentinelOne and Aristotle Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and Aristotle is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aristotle Growth Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Growth Equity 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 Aristotle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Growth Equity has no effect on the direction of SentinelOne i.e., SentinelOne and Aristotle Growth go up and down completely randomly.
Pair Corralation between SentinelOne and Aristotle Growth
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.26 times more return on investment than Aristotle Growth. However, SentinelOne is 2.26 times more volatile than Aristotle Growth Equity. It trades about 0.16 of its potential returns per unit of risk. Aristotle Growth Equity is currently generating about 0.1 per unit of risk. If you would invest 1,722 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,073 from holding SentinelOne or generate 62.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
SentinelOne vs. Aristotle Growth Equity
Performance |
| Timeline |
| SentinelOne |
| Aristotle Growth Equity |
SentinelOne and Aristotle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Aristotle Growth
The main advantage of trading using opposite SentinelOne and Aristotle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Aristotle Growth 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 Aristotle Growth will offset losses from the drop in Aristotle Growth's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Aristotle Growth vs. Allianzgi Convertible Income | Aristotle Growth vs. Lord Abbett Convertible | Aristotle Growth vs. Virtus Convertible | Aristotle Growth vs. Harbor Vertible Securities |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |