Correlation Between SentinelOne and Matson Money
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Matson Money 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 Matson Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Matson Money Equity, you can compare the effects of market volatilities on SentinelOne and Matson Money 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 Matson Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Matson Money.
Diversification Opportunities for SentinelOne and Matson Money
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Matson is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Matson Money Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Money Equity 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 Matson Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Money Equity has no effect on the direction of SentinelOne i.e., SentinelOne and Matson Money go up and down completely randomly.
Pair Corralation between SentinelOne and Matson Money
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.74 times more return on investment than Matson Money. However, SentinelOne is 3.74 times more volatile than Matson Money Equity. It trades about 0.06 of its potential returns per unit of risk. Matson Money Equity is currently generating about 0.07 per unit of risk. If you would invest 1,397 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 1,391 from holding SentinelOne or generate 99.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Matson Money Equity
Performance |
| Timeline |
| SentinelOne |
| Matson Money Equity |
SentinelOne and Matson Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Matson Money
The main advantage of trading using opposite SentinelOne and Matson Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Matson Money 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 Matson Money will offset losses from the drop in Matson Money's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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