Correlation Between SentinelOne and Salient Tactical
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Salient Tactical 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 Salient Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Salient Tactical Growth, you can compare the effects of market volatilities on SentinelOne and Salient Tactical 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 Salient Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Salient Tactical.
Diversification Opportunities for SentinelOne and Salient Tactical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Salient is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Salient Tactical Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Tactical Growth 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 Salient Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Tactical Growth has no effect on the direction of SentinelOne i.e., SentinelOne and Salient Tactical go up and down completely randomly.
Pair Corralation between SentinelOne and Salient Tactical
Taking into account the 90-day investment horizon SentinelOne is expected to generate 12.71 times more return on investment than Salient Tactical. However, SentinelOne is 12.71 times more volatile than Salient Tactical Growth. It trades about 0.05 of its potential returns per unit of risk. Salient Tactical Growth is currently generating about 0.05 per unit of risk. If you would invest 1,537 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 1,271 from holding SentinelOne or generate 82.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Salient Tactical Growth
Performance |
| Timeline |
| SentinelOne |
| Salient Tactical Growth |
SentinelOne and Salient Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Salient Tactical
The main advantage of trading using opposite SentinelOne and Salient Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Salient Tactical 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 Salient Tactical will offset losses from the drop in Salient Tactical's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Salient Tactical vs. Jpmorgan Hedged Equity | Salient Tactical vs. Jpmorgan Hedged Equity | Salient Tactical vs. Gateway Fund Class | Salient Tactical vs. Gateway Fund Class |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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