Correlation Between SentinelOne and Alger Funds
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Alger Funds 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 Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and The Alger Funds, you can compare the effects of market volatilities on SentinelOne and Alger Funds 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 Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Alger Funds.
Diversification Opportunities for SentinelOne and Alger Funds
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Alger is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and The Alger Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Funds 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 Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Funds has no effect on the direction of SentinelOne i.e., SentinelOne and Alger Funds go up and down completely randomly.
Pair Corralation between SentinelOne and Alger Funds
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.14 times less return on investment than Alger Funds. In addition to that, SentinelOne is 1.5 times more volatile than The Alger Funds. It trades about 0.13 of its total potential returns per unit of risk. The Alger Funds is currently generating about 0.23 per unit of volatility. If you would invest 1,099 in The Alger Funds on August 28, 2024 and sell it today you would earn a total of 94.00 from holding The Alger Funds or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. The Alger Funds
Performance |
| Timeline |
| SentinelOne |
| Alger Funds |
SentinelOne and Alger Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Alger Funds
The main advantage of trading using opposite SentinelOne and Alger Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Alger Funds 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 Funds will offset losses from the drop in Alger Funds' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Alger Funds vs. Alger Midcap Growth | Alger Funds vs. Alger Midcap Growth | Alger Funds vs. Alger Mid Cap | Alger Funds vs. Alger Global Growth |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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