Correlation Between SentinelOne and Eagle Small
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Eagle Small 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 Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Eagle Small Cap, you can compare the effects of market volatilities on SentinelOne and Eagle Small 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 Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Eagle Small.
Diversification Opportunities for SentinelOne and Eagle Small
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Eagle is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap 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 Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of SentinelOne i.e., SentinelOne and Eagle Small go up and down completely randomly.
Pair Corralation between SentinelOne and Eagle Small
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.73 times more return on investment than Eagle Small. However, SentinelOne is 1.73 times more volatile than Eagle Small Cap. It trades about 0.13 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.23 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 179.00 from holding SentinelOne or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Eagle Small Cap
Performance |
| Timeline |
| SentinelOne |
| Eagle Small Cap |
SentinelOne and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Eagle Small
The main advantage of trading using opposite SentinelOne and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Eagle Small vs. Pioneer High Yield | Eagle Small vs. American Century High | Eagle Small vs. Multi Manager High Yield | Eagle Small vs. Pace High Yield |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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