Correlation Between SentinelOne and General Mills
Can any of the company-specific risk be diversified away by investing in both SentinelOne and General Mills 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 General Mills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and General Mills, you can compare the effects of market volatilities on SentinelOne and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and General Mills.
Diversification Opportunities for SentinelOne and General Mills
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and General is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of SentinelOne i.e., SentinelOne and General Mills go up and down completely randomly.
Pair Corralation between SentinelOne and General Mills
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.95 times more return on investment than General Mills. However, SentinelOne is 2.95 times more volatile than General Mills. It trades about 0.05 of its potential returns per unit of risk. General Mills is currently generating about -0.03 per unit of risk. If you would invest 1,524 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,284 from holding SentinelOne or generate 84.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.22% |
| Values | Daily Returns |
SentinelOne vs. General Mills
Performance |
| Timeline |
| SentinelOne |
| General Mills |
SentinelOne and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and General Mills
The main advantage of trading using opposite SentinelOne and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| General Mills vs. Superior Plus Corp | General Mills vs. SIVERS SEMICONDUCTORS AB | General Mills vs. Talanx AG | General Mills vs. 2G ENERGY |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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