Correlation Between SentinelOne and Faraday Future
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Faraday Future 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 Faraday Future into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Faraday Future Intelligent, you can compare the effects of market volatilities on SentinelOne and Faraday Future 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 Faraday Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Faraday Future.
Diversification Opportunities for SentinelOne and Faraday Future
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Faraday is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Faraday Future Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faraday Future Intel 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 Faraday Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faraday Future Intel has no effect on the direction of SentinelOne i.e., SentinelOne and Faraday Future go up and down completely randomly.
Pair Corralation between SentinelOne and Faraday Future
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.48 times more return on investment than Faraday Future. However, SentinelOne is 2.08 times less risky than Faraday Future. It trades about 0.13 of its potential returns per unit of risk. Faraday Future Intelligent is currently generating about -0.37 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 179.00 from holding SentinelOne or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Faraday Future Intelligent
Performance |
| Timeline |
| SentinelOne |
| Faraday Future Intel |
SentinelOne and Faraday Future Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Faraday Future
The main advantage of trading using opposite SentinelOne and Faraday Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Faraday Future 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 Faraday Future will offset losses from the drop in Faraday Future's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Faraday Future vs. Nio Class A | Faraday Future vs. Lucid Group | Faraday Future vs. Tesla Inc | Faraday Future vs. Mullen Automotive |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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