Correlation Between SentinelOne and Itron
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Itron 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 Itron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Itron Inc, you can compare the effects of market volatilities on SentinelOne and Itron 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 Itron. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Itron.
Diversification Opportunities for SentinelOne and Itron
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Itron is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Itron Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itron Inc 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 Itron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itron Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Itron go up and down completely randomly.
Pair Corralation between SentinelOne and Itron
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.51 times more return on investment than Itron. However, SentinelOne is 1.51 times more volatile than Itron Inc. It trades about 0.06 of its potential returns per unit of risk. Itron Inc is currently generating about 0.08 per unit of risk. If you would invest 1,410 in SentinelOne on August 27, 2024 and sell it today you would earn a total of 1,444 from holding SentinelOne or generate 102.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Itron Inc
Performance |
| Timeline |
| SentinelOne |
| Itron Inc |
SentinelOne and Itron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Itron
The main advantage of trading using opposite SentinelOne and Itron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Itron 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 Itron will offset losses from the drop in Itron's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |