Correlation Between SentinelOne and Fevertree Drinks
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Fevertree Drinks 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 Fevertree Drinks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Fevertree Drinks Plc, you can compare the effects of market volatilities on SentinelOne and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Fevertree Drinks.
Diversification Opportunities for SentinelOne and Fevertree Drinks
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and Fevertree is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Fevertree Drinks Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks Plc 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks Plc has no effect on the direction of SentinelOne i.e., SentinelOne and Fevertree Drinks go up and down completely randomly.
Pair Corralation between SentinelOne and Fevertree Drinks
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.41 times more return on investment than Fevertree Drinks. However, SentinelOne is 1.41 times more volatile than Fevertree Drinks Plc. It trades about 0.12 of its potential returns per unit of risk. Fevertree Drinks Plc is currently generating about -0.2 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Fevertree Drinks Plc
Performance |
| Timeline |
| SentinelOne |
| Fevertree Drinks Plc |
SentinelOne and Fevertree Drinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Fevertree Drinks
The main advantage of trading using opposite SentinelOne and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Fevertree Drinks vs. Quadrise Plc | Fevertree Drinks vs. ImmuPharma PLC | Fevertree Drinks vs. Intuitive Investments Group | Fevertree Drinks vs. European Metals Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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