Correlation Between SentinelOne and First Eagle
Can any of the company-specific risk be diversified away by investing in both SentinelOne and First Eagle 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 First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and First Eagle Fund, you can compare the effects of market volatilities on SentinelOne and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and First Eagle.
Diversification Opportunities for SentinelOne and First Eagle
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and First is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Fund has no effect on the direction of SentinelOne i.e., SentinelOne and First Eagle go up and down completely randomly.
Pair Corralation between SentinelOne and First Eagle
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.5 times more return on investment than First Eagle. However, SentinelOne is 2.5 times more volatile than First Eagle Fund. It trades about 0.17 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.24 per unit of risk. If you would invest 2,248 in SentinelOne on November 8, 2024 and sell it today you would earn a total of 136.00 from holding SentinelOne or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. First Eagle Fund
Performance |
| Timeline |
| SentinelOne |
| First Eagle Fund |
SentinelOne and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and First Eagle
The main advantage of trading using opposite SentinelOne and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| First Eagle vs. Fidelity Sai Inflationfocused | First Eagle vs. Loomis Sayles Inflation | First Eagle vs. Tiaa Cref Inflation Linked Bond | First Eagle vs. Cref Inflation Linked Bond |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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