Correlation Between SentinelOne and Franklin Convertible
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Franklin Convertible 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 Franklin Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Franklin Vertible Securities, you can compare the effects of market volatilities on SentinelOne and Franklin Convertible 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 Franklin Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Franklin Convertible.
Diversification Opportunities for SentinelOne and Franklin Convertible
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Franklin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Franklin Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Convertible 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 Franklin Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Convertible has no effect on the direction of SentinelOne i.e., SentinelOne and Franklin Convertible go up and down completely randomly.
Pair Corralation between SentinelOne and Franklin Convertible
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.3 times more return on investment than Franklin Convertible. However, SentinelOne is 5.3 times more volatile than Franklin Vertible Securities. It trades about 0.14 of its potential returns per unit of risk. Franklin Vertible Securities is currently generating about 0.4 per unit of risk. If you would invest 2,288 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 520.00 from holding SentinelOne or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Franklin Vertible Securities
Performance |
| Timeline |
| SentinelOne |
| Franklin Convertible |
SentinelOne and Franklin Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Franklin Convertible
The main advantage of trading using opposite SentinelOne and Franklin Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Franklin Convertible 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 Franklin Convertible will offset losses from the drop in Franklin Convertible's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Franklin Convertible vs. Vanguard Growth And | Franklin Convertible vs. Ab Small Cap | Franklin Convertible vs. Victory Rs Small | Franklin Convertible vs. Rational Defensive Growth |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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