Correlation Between SentinelOne and Evolv Technologies
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Evolv Technologies 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 Evolv Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Evolv Technologies Holdings, you can compare the effects of market volatilities on SentinelOne and Evolv Technologies 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 Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Evolv Technologies.
Diversification Opportunities for SentinelOne and Evolv Technologies
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Evolv is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies 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 Evolv Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolv Technologies has no effect on the direction of SentinelOne i.e., SentinelOne and Evolv Technologies go up and down completely randomly.
Pair Corralation between SentinelOne and Evolv Technologies
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.28 times less return on investment than Evolv Technologies. But when comparing it to its historical volatility, SentinelOne is 3.4 times less risky than Evolv Technologies. It trades about 0.17 of its potential returns per unit of risk. Evolv Technologies Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 351.00 in Evolv Technologies Holdings on November 8, 2024 and sell it today you would earn a total of 65.00 from holding Evolv Technologies Holdings or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Evolv Technologies Holdings
Performance |
| Timeline |
| SentinelOne |
| Evolv Technologies |
SentinelOne and Evolv Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Evolv Technologies
The main advantage of trading using opposite SentinelOne and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Evolv Technologies 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 Evolv Technologies will offset losses from the drop in Evolv Technologies' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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