Correlation Between SentinelOne and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Franklin Templeton 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 Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Franklin Templeton Smacs, you can compare the effects of market volatilities on SentinelOne and Franklin Templeton 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 Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Franklin Templeton.
Diversification Opportunities for SentinelOne and Franklin Templeton
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Franklin is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Franklin Templeton Smacs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton Smacs 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 Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton Smacs has no effect on the direction of SentinelOne i.e., SentinelOne and Franklin Templeton go up and down completely randomly.
Pair Corralation between SentinelOne and Franklin Templeton
Taking into account the 90-day investment horizon SentinelOne is expected to generate 6.68 times more return on investment than Franklin Templeton. However, SentinelOne is 6.68 times more volatile than Franklin Templeton Smacs. It trades about 0.13 of its potential returns per unit of risk. Franklin Templeton Smacs is currently generating about 0.15 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. Franklin Templeton Smacs
Performance |
| Timeline |
| SentinelOne |
| Franklin Templeton Smacs |
SentinelOne and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Franklin Templeton
The main advantage of trading using opposite SentinelOne and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Franklin Templeton 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 Templeton will offset losses from the drop in Franklin Templeton's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Franklin Templeton vs. Rationalpier 88 Convertible | Franklin Templeton vs. Absolute Convertible Arbitrage | Franklin Templeton vs. Lord Abbett Convertible | Franklin Templeton vs. Advent Claymore Convertible |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |