Correlation Between SentinelOne and Blue Whale
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Blue Whale 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 Blue Whale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Blue Whale Acquisition, you can compare the effects of market volatilities on SentinelOne and Blue Whale 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 Blue Whale. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Blue Whale.
Diversification Opportunities for SentinelOne and Blue Whale
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Blue is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Blue Whale Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Whale Acquisition 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 Blue Whale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Whale Acquisition has no effect on the direction of SentinelOne i.e., SentinelOne and Blue Whale go up and down completely randomly.
Pair Corralation between SentinelOne and Blue Whale
Taking into account the 90-day investment horizon SentinelOne is expected to generate 13.5 times less return on investment than Blue Whale. But when comparing it to its historical volatility, SentinelOne is 7.09 times less risky than Blue Whale. It trades about 0.05 of its potential returns per unit of risk. Blue Whale Acquisition is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Blue Whale Acquisition on August 30, 2024 and sell it today you would lose (1.57) from holding Blue Whale Acquisition or give up 28.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.21% |
| Values | Daily Returns |
SentinelOne vs. Blue Whale Acquisition
Performance |
| Timeline |
| SentinelOne |
| Blue Whale Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and Blue Whale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Blue Whale
The main advantage of trading using opposite SentinelOne and Blue Whale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Blue Whale 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 Blue Whale will offset losses from the drop in Blue Whale's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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