Correlation Between SentinelOne and FS Energy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and FS Energy 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 FS Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and FS Energy and, you can compare the effects of market volatilities on SentinelOne and FS Energy 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 FS Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and FS Energy.
Diversification Opportunities for SentinelOne and FS Energy
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and FSEN is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and FS Energy and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Energy 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 FS Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS Energy has no effect on the direction of SentinelOne i.e., SentinelOne and FS Energy go up and down completely randomly.
Pair Corralation between SentinelOne and FS Energy
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.49 times less return on investment than FS Energy. But when comparing it to its historical volatility, SentinelOne is 4.14 times less risky than FS Energy. It trades about 0.13 of its potential returns per unit of risk. FS Energy and is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 250.00 in FS Energy and on August 27, 2024 and sell it today you would earn a total of 0.00 from holding FS Energy and or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. FS Energy and
Performance |
| Timeline |
| SentinelOne |
| FS Energy |
SentinelOne and FS Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and FS Energy
The main advantage of trading using opposite SentinelOne and FS Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, FS Energy 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 FS Energy will offset losses from the drop in FS Energy's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| FS Energy vs. Blackstone Group | FS Energy vs. BlackRock | FS Energy vs. Apollo Global Management | FS Energy vs. Bank of New |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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