Correlation Between SentinelOne and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Franklin Lifesmart 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 Lifesmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Franklin Lifesmart 2030, you can compare the effects of market volatilities on SentinelOne and Franklin Lifesmart 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 Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Franklin Lifesmart.
Diversification Opportunities for SentinelOne and Franklin Lifesmart
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Franklin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Franklin Lifesmart 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart 2030 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 Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart 2030 has no effect on the direction of SentinelOne i.e., SentinelOne and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between SentinelOne and Franklin Lifesmart
Taking into account the 90-day investment horizon SentinelOne is expected to generate 6.18 times more return on investment than Franklin Lifesmart. However, SentinelOne is 6.18 times more volatile than Franklin Lifesmart 2030. It trades about 0.17 of its potential returns per unit of risk. Franklin Lifesmart 2030 is currently generating about 0.31 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Franklin Lifesmart 2030
Performance |
| Timeline |
| SentinelOne |
| Franklin Lifesmart 2030 |
SentinelOne and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Franklin Lifesmart
The main advantage of trading using opposite SentinelOne and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Franklin Lifesmart 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 Lifesmart will offset losses from the drop in Franklin Lifesmart's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Franklin Lifesmart vs. Baron Health Care | Franklin Lifesmart vs. Blackrock Health Sciences | Franklin Lifesmart vs. Highland Longshort Healthcare | Franklin Lifesmart vs. Invesco Global Health |
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.
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