Correlation Between SentinelOne and IHT
Can any of the company-specific risk be diversified away by investing in both SentinelOne and IHT 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 IHT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and IHT, you can compare the effects of market volatilities on SentinelOne and IHT 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 IHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and IHT.
Diversification Opportunities for SentinelOne and IHT
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and IHT is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and IHT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHT 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 IHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHT has no effect on the direction of SentinelOne i.e., SentinelOne and IHT go up and down completely randomly.
Pair Corralation between SentinelOne and IHT
Taking into account the 90-day investment horizon SentinelOne is expected to generate 29.04 times less return on investment than IHT. But when comparing it to its historical volatility, SentinelOne is 21.28 times less risky than IHT. It trades about 0.14 of its potential returns per unit of risk. IHT is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.01 in IHT on August 31, 2024 and sell it today you would lose 0.00 from holding IHT or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
SentinelOne vs. IHT
Performance |
| Timeline |
| SentinelOne |
| IHT |
SentinelOne and IHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and IHT
The main advantage of trading using opposite SentinelOne and IHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, IHT 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 IHT will offset losses from the drop in IHT's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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