Correlation Between SentinelOne and Healthpeak Properties
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Healthpeak Properties 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 Healthpeak Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Healthpeak Properties, you can compare the effects of market volatilities on SentinelOne and Healthpeak Properties 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 Healthpeak Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Healthpeak Properties.
Diversification Opportunities for SentinelOne and Healthpeak Properties
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Healthpeak is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties 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 Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of SentinelOne i.e., SentinelOne and Healthpeak Properties go up and down completely randomly.
Pair Corralation between SentinelOne and Healthpeak Properties
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.69 times more return on investment than Healthpeak Properties. However, SentinelOne is 1.69 times more volatile than Healthpeak Properties. It trades about 0.12 of its potential returns per unit of risk. Healthpeak Properties is currently generating about -0.02 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Healthpeak Properties
Performance |
| Timeline |
| SentinelOne |
| Healthpeak Properties |
SentinelOne and Healthpeak Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Healthpeak Properties
The main advantage of trading using opposite SentinelOne and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Healthpeak Properties 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 Healthpeak Properties will offset losses from the drop in Healthpeak Properties' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Healthpeak Properties vs. LTC Properties | Healthpeak Properties vs. Omega Healthcare Investors | Healthpeak Properties vs. Ventas Inc | Healthpeak Properties vs. Community Healthcare 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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