Correlation Between SentinelOne and Jersey Electricity
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Jersey Electricity 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 Jersey Electricity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Jersey Electricity plc, you can compare the effects of market volatilities on SentinelOne and Jersey Electricity 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 Jersey Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Jersey Electricity.
Diversification Opportunities for SentinelOne and Jersey Electricity
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Jersey is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Jersey Electricity plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jersey Electricity plc 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 Jersey Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jersey Electricity plc has no effect on the direction of SentinelOne i.e., SentinelOne and Jersey Electricity go up and down completely randomly.
Pair Corralation between SentinelOne and Jersey Electricity
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.85 times more return on investment than Jersey Electricity. However, SentinelOne is 1.85 times more volatile than Jersey Electricity plc. It trades about 0.11 of its potential returns per unit of risk. Jersey Electricity plc is currently generating about 0.12 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. Jersey Electricity plc
Performance |
| Timeline |
| SentinelOne |
| Jersey Electricity plc |
SentinelOne and Jersey Electricity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Jersey Electricity
The main advantage of trading using opposite SentinelOne and Jersey Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Jersey Electricity 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 Jersey Electricity will offset losses from the drop in Jersey Electricity's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Jersey Electricity vs. Zanaga Iron Ore | Jersey Electricity vs. Spotify Technology SA | Jersey Electricity vs. Zegona Communications Plc | Jersey Electricity vs. Baker Steel Resources |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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