Correlation Between SentinelOne and Arcturus Therapeutics
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Arcturus Therapeutics 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 Arcturus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Arcturus Therapeutics Holdings, you can compare the effects of market volatilities on SentinelOne and Arcturus Therapeutics 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 Arcturus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Arcturus Therapeutics.
Diversification Opportunities for SentinelOne and Arcturus Therapeutics
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Arcturus is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Arcturus Therapeutics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcturus Therapeutics 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 Arcturus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcturus Therapeutics has no effect on the direction of SentinelOne i.e., SentinelOne and Arcturus Therapeutics go up and down completely randomly.
Pair Corralation between SentinelOne and Arcturus Therapeutics
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.46 times more return on investment than Arcturus Therapeutics. However, SentinelOne is 2.16 times less risky than Arcturus Therapeutics. It trades about 0.15 of its potential returns per unit of risk. Arcturus Therapeutics Holdings is currently generating about 0.04 per unit of risk. If you would invest 2,601 in SentinelOne on September 2, 2024 and sell it today you would earn a total of 194.00 from holding SentinelOne or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Arcturus Therapeutics Holdings
Performance |
| Timeline |
| SentinelOne |
| Arcturus Therapeutics |
SentinelOne and Arcturus Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Arcturus Therapeutics
The main advantage of trading using opposite SentinelOne and Arcturus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Arcturus Therapeutics 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 Arcturus Therapeutics will offset losses from the drop in Arcturus Therapeutics' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Arcturus Therapeutics vs. 89bio Inc | Arcturus Therapeutics vs. Madrigal Pharmaceuticals | Arcturus Therapeutics vs. Pliant Therapeutics | Arcturus Therapeutics vs. Arcellx |
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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