Correlation Between SentinelOne and Horizon Active
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Horizon Active 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 Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Horizon Active Asset, you can compare the effects of market volatilities on SentinelOne and Horizon Active 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 Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Horizon Active.
Diversification Opportunities for SentinelOne and Horizon Active
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Horizon is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Horizon Active Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Asset 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 Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Asset has no effect on the direction of SentinelOne i.e., SentinelOne and Horizon Active go up and down completely randomly.
Pair Corralation between SentinelOne and Horizon Active
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.27 times more return on investment than Horizon Active. However, SentinelOne is 3.27 times more volatile than Horizon Active Asset. It trades about 0.12 of its potential returns per unit of risk. Horizon Active Asset is currently generating about 0.1 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Horizon Active Asset
Performance |
| Timeline |
| SentinelOne |
| Horizon Active Asset |
SentinelOne and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Horizon Active
The main advantage of trading using opposite SentinelOne and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Horizon Active vs. Victory Rs Partners | Horizon Active vs. Amg River Road | Horizon Active vs. Vanguard Small Cap Value | Horizon Active vs. Ab Discovery Value |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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