Correlation Between SentinelOne and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ProShares Ultra 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 ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ProShares Ultra Dow30, you can compare the effects of market volatilities on SentinelOne and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ProShares Ultra.
Diversification Opportunities for SentinelOne and ProShares Ultra
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and ProShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ProShares Ultra Dow30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Dow30 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Dow30 has no effect on the direction of SentinelOne i.e., SentinelOne and ProShares Ultra go up and down completely randomly.
Pair Corralation between SentinelOne and ProShares Ultra
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.82 times less return on investment than ProShares Ultra. In addition to that, SentinelOne is 1.3 times more volatile than ProShares Ultra Dow30. It trades about 0.11 of its total potential returns per unit of risk. ProShares Ultra Dow30 is currently generating about 0.26 per unit of volatility. If you would invest 9,485 in ProShares Ultra Dow30 on August 30, 2024 and sell it today you would earn a total of 1,107 from holding ProShares Ultra Dow30 or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. ProShares Ultra Dow30
Performance |
| Timeline |
| SentinelOne |
| ProShares Ultra Dow30 |
SentinelOne and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ProShares Ultra
The main advantage of trading using opposite SentinelOne and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| ProShares Ultra vs. ProShares Ultra SP500 | ProShares Ultra vs. ProShares UltraShort Dow30 | ProShares Ultra vs. ProShares Ultra QQQ | ProShares Ultra vs. ProShares Ultra Russell2000 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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