Correlation Between SentinelOne and ETN
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ETN 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 ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ETN, you can compare the effects of market volatilities on SentinelOne and ETN 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 ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ETN.
Diversification Opportunities for SentinelOne and ETN
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and ETN is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ETN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETN 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 ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETN has no effect on the direction of SentinelOne i.e., SentinelOne and ETN go up and down completely randomly.
Pair Corralation between SentinelOne and ETN
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.77 times less return on investment than ETN. But when comparing it to its historical volatility, SentinelOne is 3.31 times less risky than ETN. It trades about 0.08 of its potential returns per unit of risk. ETN is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.22 in ETN on August 27, 2024 and sell it today you would lose (0.02) from holding ETN or give up 9.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.58% |
| Values | Daily Returns |
SentinelOne vs. ETN
Performance |
| Timeline |
| SentinelOne |
| ETN |
SentinelOne and ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ETN
The main advantage of trading using opposite SentinelOne and ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ETN 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 ETN will offset losses from the drop in ETN's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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