Correlation Between SentinelOne and Global Net
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Global Net 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 Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Global Net Lease, you can compare the effects of market volatilities on SentinelOne and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Global Net.
Diversification Opportunities for SentinelOne and Global Net
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Global is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of SentinelOne i.e., SentinelOne and Global Net go up and down completely randomly.
Pair Corralation between SentinelOne and Global Net
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.19 times less return on investment than Global Net. In addition to that, SentinelOne is 2.32 times more volatile than Global Net Lease. It trades about 0.01 of its total potential returns per unit of risk. Global Net Lease is currently generating about 0.07 per unit of volatility. If you would invest 1,686 in Global Net Lease on November 5, 2024 and sell it today you would earn a total of 430.00 from holding Global Net Lease or generate 25.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.65% |
| Values | Daily Returns |
SentinelOne vs. Global Net Lease
Performance |
| Timeline |
| SentinelOne |
| Global Net Lease |
SentinelOne and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Global Net
The main advantage of trading using opposite SentinelOne and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Global Net vs. Global Net Lease | Global Net vs. Global Medical REIT | Global Net vs. City Office REIT | Global Net vs. ARMOUR Residential REIT |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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