Correlation Between SentinelOne and Bitwise Funds
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Bitwise 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 Bitwise Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Bitwise Funds Trust, you can compare the effects of market volatilities on SentinelOne and Bitwise 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 Bitwise Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Bitwise Funds.
Diversification Opportunities for SentinelOne and Bitwise Funds
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Bitwise is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Bitwise Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Funds Trust 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 Bitwise Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Funds Trust has no effect on the direction of SentinelOne i.e., SentinelOne and Bitwise Funds go up and down completely randomly.
Pair Corralation between SentinelOne and Bitwise Funds
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.9 times more return on investment than Bitwise Funds. However, SentinelOne is 1.12 times less risky than Bitwise Funds. It trades about 0.04 of its potential returns per unit of risk. Bitwise Funds Trust is currently generating about 0.03 per unit of risk. If you would invest 1,599 in SentinelOne on November 19, 2024 and sell it today you would earn a total of 881.00 from holding SentinelOne or generate 55.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 69.76% |
| Values | Daily Returns |
SentinelOne vs. Bitwise Funds Trust
Performance |
| Timeline |
| SentinelOne |
| Bitwise Funds Trust |
SentinelOne and Bitwise Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Bitwise Funds
The main advantage of trading using opposite SentinelOne and Bitwise Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Bitwise 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 Bitwise Funds will offset losses from the drop in Bitwise Funds' long position.| SentinelOne vs. Alarum Technologies | SentinelOne vs. Arqit Quantum | SentinelOne vs. Nutanix | SentinelOne vs. Palo Alto Networks |
| Bitwise Funds vs. Grayscale Funds Trust | Bitwise Funds vs. ProShares Trust | Bitwise Funds vs. iShares Ethereum Trust | Bitwise Funds vs. ProShares Trust |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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