Correlation Between SentinelOne and Amgen
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Amgen 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 Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Amgen Inc, you can compare the effects of market volatilities on SentinelOne and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Amgen.
Diversification Opportunities for SentinelOne and Amgen
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Amgen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Amgen go up and down completely randomly.
Pair Corralation between SentinelOne and Amgen
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.7 times more return on investment than Amgen. However, SentinelOne is 1.42 times less risky than Amgen. It trades about 0.11 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.1 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. Amgen Inc
Performance |
| Timeline |
| SentinelOne |
| Amgen Inc |
SentinelOne and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Amgen
The main advantage of trading using opposite SentinelOne and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Amgen vs. THAI BEVERAGE | Amgen vs. Materialise NV | Amgen vs. VULCAN MATERIALS | Amgen vs. China Resources Beer |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |