Correlation Between SentinelOne and Emerald Growth
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Emerald Growth 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 Emerald Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Emerald Growth Fund, you can compare the effects of market volatilities on SentinelOne and Emerald Growth 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 Emerald Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Emerald Growth.
Diversification Opportunities for SentinelOne and Emerald Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Emerald is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Emerald Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Growth 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 Emerald Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Growth has no effect on the direction of SentinelOne i.e., SentinelOne and Emerald Growth go up and down completely randomly.
Pair Corralation between SentinelOne and Emerald Growth
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.41 times more return on investment than Emerald Growth. However, SentinelOne is 1.41 times more volatile than Emerald Growth Fund. It trades about 0.18 of its potential returns per unit of risk. Emerald Growth Fund is currently generating about 0.18 per unit of risk. If you would invest 2,597 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 257.00 from holding SentinelOne or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Emerald Growth Fund
Performance |
| Timeline |
| SentinelOne |
| Emerald Growth |
SentinelOne and Emerald Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Emerald Growth
The main advantage of trading using opposite SentinelOne and Emerald Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Emerald Growth 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 Emerald Growth will offset losses from the drop in Emerald Growth's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Emerald Growth vs. The Chesapeake Growth | Emerald Growth vs. Emerald Banking And | Emerald Growth vs. Hotchkis Wiley Large | Emerald Growth vs. Emerald Growth Fund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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