Correlation Between SentinelOne and Henderson Global
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Henderson Global 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 Henderson Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Henderson Global Equity, you can compare the effects of market volatilities on SentinelOne and Henderson Global 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 Henderson Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Henderson Global.
Diversification Opportunities for SentinelOne and Henderson Global
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Henderson is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Henderson Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson Global Equity 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 Henderson Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson Global Equity has no effect on the direction of SentinelOne i.e., SentinelOne and Henderson Global go up and down completely randomly.
Pair Corralation between SentinelOne and Henderson Global
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.93 times more return on investment than Henderson Global. However, SentinelOne is 3.93 times more volatile than Henderson Global Equity. It trades about 0.16 of its potential returns per unit of risk. Henderson Global Equity is currently generating about 0.03 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 | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
SentinelOne vs. Henderson Global Equity
Performance |
| Timeline |
| SentinelOne |
| Henderson Global Equity |
SentinelOne and Henderson Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Henderson Global
The main advantage of trading using opposite SentinelOne and Henderson Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Henderson Global 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 Henderson Global will offset losses from the drop in Henderson Global's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Henderson Global vs. Thornburg Investment Income | Henderson Global vs. Jpmorgan Income Builder | Henderson Global vs. Global Diversified Income | Henderson Global vs. Henderson Global Equity |
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.
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