Correlation Between SentinelOne and F5 Networks
Can any of the company-specific risk be diversified away by investing in both SentinelOne and F5 Networks 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 F5 Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and F5 Networks, you can compare the effects of market volatilities on SentinelOne and F5 Networks 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 F5 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and F5 Networks.
Diversification Opportunities for SentinelOne and F5 Networks
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and FFIV is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and F5 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F5 Networks 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 F5 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F5 Networks has no effect on the direction of SentinelOne i.e., SentinelOne and F5 Networks go up and down completely randomly.
Pair Corralation between SentinelOne and F5 Networks
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.44 times more return on investment than F5 Networks. However, SentinelOne is 2.44 times more volatile than F5 Networks. It trades about 0.05 of its potential returns per unit of risk. F5 Networks is currently generating about 0.07 per unit of risk. If you would invest 1,478 in SentinelOne on August 23, 2024 and sell it today you would earn a total of 1,335 from holding SentinelOne or generate 90.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. F5 Networks
Performance |
| Timeline |
| SentinelOne |
| F5 Networks |
SentinelOne and F5 Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and F5 Networks
The main advantage of trading using opposite SentinelOne and F5 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, F5 Networks 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 F5 Networks will offset losses from the drop in F5 Networks' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| F5 Networks vs. VeriSign | F5 Networks vs. Check Point Software | F5 Networks vs. Qualys Inc | F5 Networks vs. CyberArk Software |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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