Correlation Between SentinelOne and Graham
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Graham 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 Graham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Graham, you can compare the effects of market volatilities on SentinelOne and Graham 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 Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Graham.
Diversification Opportunities for SentinelOne and Graham
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Graham is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Graham in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham 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 Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham has no effect on the direction of SentinelOne i.e., SentinelOne and Graham go up and down completely randomly.
Pair Corralation between SentinelOne and Graham
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.49 times less return on investment than Graham. In addition to that, SentinelOne is 1.24 times more volatile than Graham. It trades about 0.04 of its total potential returns per unit of risk. Graham is currently generating about 0.08 per unit of volatility. If you would invest 1,436 in Graham on November 19, 2024 and sell it today you would earn a total of 2,315 from holding Graham or generate 161.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Graham
Performance |
| Timeline |
| SentinelOne |
| Graham |
SentinelOne and Graham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Graham
The main advantage of trading using opposite SentinelOne and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.| SentinelOne vs. Alarum Technologies | SentinelOne vs. Arqit Quantum | SentinelOne vs. Nutanix | SentinelOne vs. Palo Alto Networks |
| Graham vs. Luxfer Holdings PLC | Graham vs. Enerpac Tool Group | Graham vs. Kadant Inc | Graham vs. Omega Flex |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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