Correlation Between SentinelOne and IndexIQ
Can any of the company-specific risk be diversified away by investing in both SentinelOne and IndexIQ 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 IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and IndexIQ, you can compare the effects of market volatilities on SentinelOne and IndexIQ 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 IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and IndexIQ.
Diversification Opportunities for SentinelOne and IndexIQ
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and IndexIQ is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ 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 IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of SentinelOne i.e., SentinelOne and IndexIQ go up and down completely randomly.
Pair Corralation between SentinelOne and IndexIQ
If you would invest 2,609 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 179.00 from holding SentinelOne or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
SentinelOne vs. IndexIQ
Performance |
| Timeline |
| SentinelOne |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and IndexIQ
The main advantage of trading using opposite SentinelOne and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, IndexIQ 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 IndexIQ will offset losses from the drop in IndexIQ's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| IndexIQ vs. VictoryShares Discovery Enhanced | IndexIQ vs. First Trust Mid | IndexIQ vs. First Trust Small |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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