Correlation Between SentinelOne and Akre Focus
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Akre Focus 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 Akre Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Akre Focus Fund, you can compare the effects of market volatilities on SentinelOne and Akre Focus 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 Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Akre Focus.
Diversification Opportunities for SentinelOne and Akre Focus
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and AKRE is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund 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 Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of SentinelOne i.e., SentinelOne and Akre Focus go up and down completely randomly.
Pair Corralation between SentinelOne and Akre Focus
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.15 times more return on investment than Akre Focus. However, SentinelOne is 3.15 times more volatile than Akre Focus Fund. It trades about 0.13 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.29 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Akre Focus Fund
Performance |
| Timeline |
| SentinelOne |
| Akre Focus Fund |
SentinelOne and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Akre Focus
The main advantage of trading using opposite SentinelOne and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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