Correlation Between SentinelOne and Benton Resources
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Benton Resources 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 Benton Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Benton Resources, you can compare the effects of market volatilities on SentinelOne and Benton Resources 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 Benton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Benton Resources.
Diversification Opportunities for SentinelOne and Benton Resources
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Benton is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Benton Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benton Resources 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 Benton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benton Resources has no effect on the direction of SentinelOne i.e., SentinelOne and Benton Resources go up and down completely randomly.
Pair Corralation between SentinelOne and Benton Resources
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.84 times less return on investment than Benton Resources. But when comparing it to its historical volatility, SentinelOne is 5.97 times less risky than Benton Resources. It trades about 0.16 of its potential returns per unit of risk. Benton Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8.56 in Benton Resources on September 1, 2024 and sell it today you would lose (3.56) from holding Benton Resources or give up 41.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Benton Resources
Performance |
| Timeline |
| SentinelOne |
| Benton Resources |
SentinelOne and Benton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Benton Resources
The main advantage of trading using opposite SentinelOne and Benton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Benton Resources 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 Benton Resources will offset losses from the drop in Benton Resources' long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Benton Resources vs. Aurelia Metals Limited | Benton Resources vs. Artemis Resources | Benton Resources vs. Ascendant Resources | Benton Resources vs. Altiplano Metals |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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