Correlation Between SentinelOne and Ensign Energy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Ensign Energy 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 Ensign Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Ensign Energy Services, you can compare the effects of market volatilities on SentinelOne and Ensign Energy 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 Ensign Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Ensign Energy.
Diversification Opportunities for SentinelOne and Ensign Energy
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Ensign is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Ensign Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Energy Services 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 Ensign Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Energy Services has no effect on the direction of SentinelOne i.e., SentinelOne and Ensign Energy go up and down completely randomly.
Pair Corralation between SentinelOne and Ensign Energy
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.28 times less return on investment than Ensign Energy. In addition to that, SentinelOne is 1.14 times more volatile than Ensign Energy Services. It trades about 0.11 of its total potential returns per unit of risk. Ensign Energy Services is currently generating about 0.17 per unit of volatility. If you would invest 269.00 in Ensign Energy Services on August 30, 2024 and sell it today you would earn a total of 22.00 from holding Ensign Energy Services or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. Ensign Energy Services
Performance |
| Timeline |
| SentinelOne |
| Ensign Energy Services |
SentinelOne and Ensign Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Ensign Energy
The main advantage of trading using opposite SentinelOne and Ensign Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Ensign Energy 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 Ensign Energy will offset losses from the drop in Ensign Energy's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Ensign Energy vs. Precision Drilling | Ensign Energy vs. Trican Well Service | Ensign Energy vs. Calfrac Well Services | Ensign Energy vs. NuVista Energy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |