Correlation Between SentinelOne and Federated Emerging
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Federated Emerging 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 Federated Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Federated Emerging Market, you can compare the effects of market volatilities on SentinelOne and Federated Emerging 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 Federated Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Federated Emerging.
Diversification Opportunities for SentinelOne and Federated Emerging
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Federated is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Federated Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Emerging Market 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 Federated Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Emerging Market has no effect on the direction of SentinelOne i.e., SentinelOne and Federated Emerging go up and down completely randomly.
Pair Corralation between SentinelOne and Federated Emerging
Taking into account the 90-day investment horizon SentinelOne is expected to generate 7.35 times more return on investment than Federated Emerging. However, SentinelOne is 7.35 times more volatile than Federated Emerging Market. It trades about 0.14 of its potential returns per unit of risk. Federated Emerging Market is currently generating about 0.07 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 199.00 from holding SentinelOne or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Federated Emerging Market
Performance |
| Timeline |
| SentinelOne |
| Federated Emerging Market |
SentinelOne and Federated Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Federated Emerging
The main advantage of trading using opposite SentinelOne and Federated Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Federated Emerging 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 Federated Emerging will offset losses from the drop in Federated Emerging'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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