Correlation Between SentinelOne and Infinera
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Infinera 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 Infinera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Infinera, you can compare the effects of market volatilities on SentinelOne and Infinera 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 Infinera. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Infinera.
Diversification Opportunities for SentinelOne and Infinera
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Infinera is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Infinera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinera 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 Infinera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinera has no effect on the direction of SentinelOne i.e., SentinelOne and Infinera go up and down completely randomly.
Pair Corralation between SentinelOne and Infinera
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.09 times more return on investment than Infinera. However, SentinelOne is 5.09 times more volatile than Infinera. It trades about 0.17 of its potential returns per unit of risk. Infinera is currently generating about 0.04 per unit of risk. If you would invest 2,250 in SentinelOne on November 9, 2024 and sell it today you would earn a total of 134.00 from holding SentinelOne or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Infinera
Performance |
| Timeline |
| SentinelOne |
| Infinera |
SentinelOne and Infinera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Infinera
The main advantage of trading using opposite SentinelOne and Infinera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Infinera 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 Infinera will offset losses from the drop in Infinera's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Infinera vs. Juniper Networks | Infinera vs. Lumentum Holdings | Infinera vs. Extreme Networks | Infinera vs. Clearfield |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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