Correlation Between SentinelOne and Identiv
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Identiv 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 Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Identiv, you can compare the effects of market volatilities on SentinelOne and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Identiv.
Diversification Opportunities for SentinelOne and Identiv
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Identiv is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of SentinelOne i.e., SentinelOne and Identiv go up and down completely randomly.
Pair Corralation between SentinelOne and Identiv
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.46 times less return on investment than Identiv. But when comparing it to its historical volatility, SentinelOne is 1.3 times less risky than Identiv. It trades about 0.18 of its potential returns per unit of risk. Identiv is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Identiv on August 27, 2024 and sell it today you would earn a total of 48.00 from holding Identiv or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Identiv
Performance |
| Timeline |
| SentinelOne |
| Identiv |
SentinelOne and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Identiv
The main advantage of trading using opposite SentinelOne and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |