Correlation Between SentinelOne and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Equitable Holdings 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 Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Equitable Holdings, you can compare the effects of market volatilities on SentinelOne and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Equitable Holdings.
Diversification Opportunities for SentinelOne and Equitable Holdings
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Equitable is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and Equitable Holdings go up and down completely randomly.
Pair Corralation between SentinelOne and Equitable Holdings
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.44 times less return on investment than Equitable Holdings. In addition to that, SentinelOne is 2.03 times more volatile than Equitable Holdings. It trades about 0.04 of its total potential returns per unit of risk. Equitable Holdings is currently generating about 0.11 per unit of volatility. If you would invest 2,126 in Equitable Holdings on November 27, 2024 and sell it today you would earn a total of 2,714 from holding Equitable Holdings or generate 127.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
SentinelOne vs. Equitable Holdings
Performance |
| Timeline |
| SentinelOne |
| Equitable Holdings |
SentinelOne and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Equitable Holdings
The main advantage of trading using opposite SentinelOne and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Equitable Holdings vs. Waste Management | Equitable Holdings vs. OFFICE DEPOT | Equitable Holdings vs. CITY OFFICE REIT | Equitable Holdings vs. Cleanaway Waste Management |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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