Correlation Between SentinelOne and Franklin California
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Franklin California 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 Franklin California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Franklin California Tax Free, you can compare the effects of market volatilities on SentinelOne and Franklin California 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 Franklin California. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Franklin California.
Diversification Opportunities for SentinelOne and Franklin California
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Franklin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Franklin California Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin California Tax 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 Franklin California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin California Tax has no effect on the direction of SentinelOne i.e., SentinelOne and Franklin California go up and down completely randomly.
Pair Corralation between SentinelOne and Franklin California
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Franklin California. In addition to that, SentinelOne is 10.12 times more volatile than Franklin California Tax Free. It trades about -0.12 of its total potential returns per unit of risk. Franklin California Tax Free is currently generating about 0.13 per unit of volatility. If you would invest 677.00 in Franklin California Tax Free on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Franklin California Tax Free or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Franklin California Tax Free
Performance |
| Timeline |
| SentinelOne |
| Franklin California Tax |
SentinelOne and Franklin California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Franklin California
The main advantage of trading using opposite SentinelOne and Franklin California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Franklin California 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 Franklin California will offset losses from the drop in Franklin California's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Franklin California vs. Lord Abbett Intermediate | Franklin California vs. Inverse Government Long | Franklin California vs. Pace Municipal Fixed | Franklin California vs. Franklin Adjustable Government |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |