Correlation Between SentinelOne and First Investors
Can any of the company-specific risk be diversified away by investing in both SentinelOne and First Investors 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 Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and First Investors Select, you can compare the effects of market volatilities on SentinelOne and First Investors 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 Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and First Investors.
Diversification Opportunities for SentinelOne and First Investors
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and First is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First Investors Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Select 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 Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Select has no effect on the direction of SentinelOne i.e., SentinelOne and First Investors go up and down completely randomly.
Pair Corralation between SentinelOne and First Investors
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.48 times more return on investment than First Investors. However, SentinelOne is 3.48 times more volatile than First Investors Select. It trades about 0.03 of its potential returns per unit of risk. First Investors Select is currently generating about 0.1 per unit of risk. If you would invest 2,550 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 245.00 from holding SentinelOne or generate 9.61% 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 Investors Select
Performance |
| Timeline |
| SentinelOne |
| First Investors Select |
SentinelOne and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and First Investors
The main advantage of trading using opposite SentinelOne and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, First Investors 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 Investors will offset losses from the drop in First Investors' long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| First Investors vs. Old Westbury Large | First Investors vs. Qs Large Cap | First Investors vs. Morningstar Unconstrained Allocation | First Investors vs. Principal Lifetime Hybrid |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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