Correlation Between SentinelOne and SPASX 200
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SPASX 200 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 SPASX 200 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SPASX 200 VIX, you can compare the effects of market volatilities on SentinelOne and SPASX 200 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 SPASX 200. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SPASX 200.
Diversification Opportunities for SentinelOne and SPASX 200
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and SPASX is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SPASX 200 VIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPASX 200 VIX 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 SPASX 200. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPASX 200 VIX has no effect on the direction of SentinelOne i.e., SentinelOne and SPASX 200 go up and down completely randomly.
Pair Corralation between SentinelOne and SPASX 200
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.58 times less return on investment than SPASX 200. But when comparing it to its historical volatility, SentinelOne is 5.47 times less risky than SPASX 200. It trades about 0.11 of its potential returns per unit of risk. SPASX 200 VIX is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,186 in SPASX 200 VIX on August 30, 2024 and sell it today you would lose (105.00) from holding SPASX 200 VIX or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. SPASX 200 VIX
Performance |
| Timeline |
SentinelOne and SPASX 200 Volatility Contrast
Predicted Return Density |
| Returns |
SentinelOne
Pair trading matchups for SentinelOne
SPASX 200 VIX
Pair trading matchups for SPASX 200
Pair Trading with SentinelOne and SPASX 200
The main advantage of trading using opposite SentinelOne and SPASX 200 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SPASX 200 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 SPASX 200 will offset losses from the drop in SPASX 200's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| SPASX 200 vs. EMvision Medical Devices | SPASX 200 vs. Actinogen Medical | SPASX 200 vs. Fisher Paykel Healthcare | SPASX 200 vs. EVE Health Group |
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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