Correlation Between SentinelOne and GSC
Can any of the company-specific risk be diversified away by investing in both SentinelOne and GSC 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 GSC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and GSC, you can compare the effects of market volatilities on SentinelOne and GSC 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 GSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and GSC.
Diversification Opportunities for SentinelOne and GSC
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and GSC is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and GSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSC 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 GSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSC has no effect on the direction of SentinelOne i.e., SentinelOne and GSC go up and down completely randomly.
Pair Corralation between SentinelOne and GSC
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.97 times less return on investment than GSC. In addition to that, SentinelOne is 1.25 times more volatile than GSC. It trades about 0.05 of its total potential returns per unit of risk. GSC is currently generating about 0.13 per unit of volatility. If you would invest 0.09 in GSC on August 30, 2024 and sell it today you would earn a total of 0.06 from holding GSC or generate 73.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 32.73% |
| Values | Daily Returns |
SentinelOne vs. GSC
Performance |
| Timeline |
| SentinelOne |
| GSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and GSC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and GSC
The main advantage of trading using opposite SentinelOne and GSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, GSC 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 GSC will offset losses from the drop in GSC's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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