Correlation Between SentinelOne and Franklin Dynatech
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Franklin Dynatech 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 Dynatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Franklin Dynatech Fund, you can compare the effects of market volatilities on SentinelOne and Franklin Dynatech 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 Dynatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Franklin Dynatech.
Diversification Opportunities for SentinelOne and Franklin Dynatech
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Franklin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Franklin Dynatech Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Dynatech 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 Dynatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Dynatech has no effect on the direction of SentinelOne i.e., SentinelOne and Franklin Dynatech go up and down completely randomly.
Pair Corralation between SentinelOne and Franklin Dynatech
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.81 times more return on investment than Franklin Dynatech. However, SentinelOne is 2.81 times more volatile than Franklin Dynatech Fund. It trades about 0.04 of its potential returns per unit of risk. Franklin Dynatech Fund is currently generating about 0.09 per unit of risk. If you would invest 1,642 in SentinelOne on November 27, 2024 and sell it today you would earn a total of 546.00 from holding SentinelOne or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Franklin Dynatech Fund
Performance |
| Timeline |
| SentinelOne |
| Franklin Dynatech |
SentinelOne and Franklin Dynatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Franklin Dynatech
The main advantage of trading using opposite SentinelOne and Franklin Dynatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Franklin Dynatech 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 Dynatech will offset losses from the drop in Franklin Dynatech's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Franklin Dynatech vs. Mfs International Diversification | Franklin Dynatech vs. John Hancock Bond | Franklin Dynatech vs. Lord Abbett Bond | Franklin Dynatech vs. Prudential Total Return |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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