Correlation Between SentinelOne and Franklin Lifesmart

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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 2050, 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

SentinelOneFranklinDiversified AwaySentinelOneFranklinDiversified Away100%
0.3
  Correlation Coefficient

Weak diversification

The 3 months correlation between SentinelOne and Franklin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Franklin Lifesmart 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart 2050 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 2050 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 under-perform the Franklin Lifesmart. In addition to that, SentinelOne is 4.15 times more volatile than Franklin Lifesmart 2050. It trades about -0.01 of its total potential returns per unit of risk. Franklin Lifesmart 2050 is currently generating about 0.09 per unit of volatility. If you would invest  1,340  in Franklin Lifesmart 2050 on November 26, 2024 and sell it today you would earn a total of  249.00  from holding Franklin Lifesmart 2050 or generate 18.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.63%
ValuesDaily Returns

SentinelOne  vs.  Franklin Lifesmart 2050

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-505
JavaScript chart by amCharts 3.21.15S FLSNX
       Timeline  
SentinelOne 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2223242526272829
Franklin Lifesmart 2050 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Lifesmart 2050 are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Franklin Lifesmart is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb15.215.415.615.816

SentinelOne and Franklin Lifesmart Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.73-3.54-2.36-1.170.01.062.133.214.28 0.20.40.60.8
JavaScript chart by amCharts 3.21.15S FLSNX
       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.
The idea behind SentinelOne and Franklin Lifesmart 2050 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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