Correlation Between SentinelOne and Equitable
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Equitable 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 Equitable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Equitable Group, you can compare the effects of market volatilities on SentinelOne and Equitable 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 Equitable. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Equitable.
Diversification Opportunities for SentinelOne and Equitable
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and Equitable is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Equitable Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Group 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 Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Group has no effect on the direction of SentinelOne i.e., SentinelOne and Equitable go up and down completely randomly.
Pair Corralation between SentinelOne and Equitable
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.17 times more return on investment than Equitable. However, SentinelOne is 1.17 times more volatile than Equitable Group. It trades about 0.21 of its potential returns per unit of risk. Equitable Group is currently generating about 0.02 per unit of risk. If you would invest 2,248 in SentinelOne on November 8, 2024 and sell it today you would earn a total of 162.00 from holding SentinelOne or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
SentinelOne vs. Equitable Group
Performance |
| Timeline |
| SentinelOne |
| Equitable Group |
SentinelOne and Equitable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Equitable
The main advantage of trading using opposite SentinelOne and Equitable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Equitable 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 Equitable will offset losses from the drop in Equitable's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Equitable vs. goeasy | Equitable vs. Canadian Western Bank | Equitable vs. TFI International | Equitable vs. Intact Financial |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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