Correlation Between SentinelOne and IShares Bitcoin
Can any of the company-specific risk be diversified away by investing in both SentinelOne and IShares Bitcoin 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 IShares Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and iShares Bitcoin Trust, you can compare the effects of market volatilities on SentinelOne and IShares Bitcoin 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 IShares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and IShares Bitcoin.
Diversification Opportunities for SentinelOne and IShares Bitcoin
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and IShares is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and iShares Bitcoin Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Bitcoin Trust 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 IShares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Bitcoin Trust has no effect on the direction of SentinelOne i.e., SentinelOne and IShares Bitcoin go up and down completely randomly.
Pair Corralation between SentinelOne and IShares Bitcoin
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.3 times less return on investment than IShares Bitcoin. In addition to that, SentinelOne is 1.06 times more volatile than iShares Bitcoin Trust. It trades about 0.05 of its total potential returns per unit of risk. iShares Bitcoin Trust is currently generating about 0.07 per unit of volatility. If you would invest 2,961 in iShares Bitcoin Trust on August 30, 2024 and sell it today you would earn a total of 2,542 from holding iShares Bitcoin Trust or generate 85.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 65.05% |
| Values | Daily Returns |
SentinelOne vs. iShares Bitcoin Trust
Performance |
| Timeline |
| SentinelOne |
| iShares Bitcoin Trust |
SentinelOne and IShares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and IShares Bitcoin
The main advantage of trading using opposite SentinelOne and IShares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, IShares Bitcoin 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 IShares Bitcoin will offset losses from the drop in IShares Bitcoin's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| IShares Bitcoin vs. ProShares Trust | IShares Bitcoin vs. iShares Ethereum Trust | IShares Bitcoin vs. ProShares Trust | IShares Bitcoin vs. Grayscale Ethereum Trust |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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