Correlation Between SentinelOne and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Eaton Vance Large Cap, you can compare the effects of market volatilities on SentinelOne and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Eaton Vance.
Diversification Opportunities for SentinelOne and Eaton Vance
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Eaton is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Eaton Vance Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Large 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Large has no effect on the direction of SentinelOne i.e., SentinelOne and Eaton Vance go up and down completely randomly.
Pair Corralation between SentinelOne and Eaton Vance
Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.4 times more return on investment than Eaton Vance. However, SentinelOne is 4.4 times more volatile than Eaton Vance Large Cap. It trades about 0.06 of its potential returns per unit of risk. Eaton Vance Large Cap is currently generating about 0.1 per unit of risk. If you would invest 1,789 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,019 from holding SentinelOne or generate 56.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Eaton Vance Large Cap
Performance |
| Timeline |
| SentinelOne |
| Eaton Vance Large |
SentinelOne and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Eaton Vance
The main advantage of trading using opposite SentinelOne and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Eaton Vance vs. Dodge Cox Stock | Eaton Vance vs. American Mutual Fund | Eaton Vance vs. American Funds American | Eaton Vance vs. American Funds American |
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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