Correlation Between SentinelOne and Global Partner
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Global Partner 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 Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Global Partner Acq, you can compare the effects of market volatilities on SentinelOne and Global Partner 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 Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Global Partner.
Diversification Opportunities for SentinelOne and Global Partner
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Global is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Global Partner Acq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acq 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 Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acq has no effect on the direction of SentinelOne i.e., SentinelOne and Global Partner go up and down completely randomly.
Pair Corralation between SentinelOne and Global Partner
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.12 times more return on investment than Global Partner. However, SentinelOne is 1.12 times more volatile than Global Partner Acq. It trades about 0.16 of its potential returns per unit of risk. Global Partner Acq is currently generating about -0.21 per unit of risk. If you would invest 1,722 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,073 from holding SentinelOne or generate 62.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 19.84% |
| Values | Daily Returns |
SentinelOne vs. Global Partner Acq
Performance |
| Timeline |
| SentinelOne |
| Global Partner Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and Global Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Global Partner
The main advantage of trading using opposite SentinelOne and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Global Partner 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 Partner will offset losses from the drop in Global Partner's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Global Partner vs. NH Foods Ltd | Global Partner vs. Diageo PLC ADR | Global Partner vs. Lifevantage | Global Partner vs. Grocery Outlet Holding |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |