Correlation Between SentinelOne and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Amplify ETF 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 Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Amplify ETF Trust, you can compare the effects of market volatilities on SentinelOne and Amplify ETF 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 Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Amplify ETF.
Diversification Opportunities for SentinelOne and Amplify ETF
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and Amplify is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF 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 Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of SentinelOne i.e., SentinelOne and Amplify ETF go up and down completely randomly.
Pair Corralation between SentinelOne and Amplify ETF
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.2 times more return on investment than Amplify ETF. However, SentinelOne is 2.2 times more volatile than Amplify ETF Trust. It trades about 0.16 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.11 per unit of risk. If you would invest 1,722 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,073 from holding SentinelOne or generate 62.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
SentinelOne vs. Amplify ETF Trust
Performance |
| Timeline |
| SentinelOne |
| Amplify ETF Trust |
SentinelOne and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Amplify ETF
The main advantage of trading using opposite SentinelOne and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Amplify ETF 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 Amplify ETF will offset losses from the drop in Amplify ETF's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Amplify ETF vs. VanEck Israel ETF | Amplify ETF vs. iShares MSCI Israel | Amplify ETF vs. ARK Israel Innovative | Amplify ETF vs. ALPS Disruptive Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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