Correlation Between SentinelOne and Wheat Futures
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Wheat Futures 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 Wheat Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Wheat Futures, you can compare the effects of market volatilities on SentinelOne and Wheat Futures 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 Wheat Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Wheat Futures.
Diversification Opportunities for SentinelOne and Wheat Futures
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Wheat is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Wheat Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheat Futures 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 Wheat Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheat Futures has no effect on the direction of SentinelOne i.e., SentinelOne and Wheat Futures go up and down completely randomly.
Pair Corralation between SentinelOne and Wheat Futures
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.63 times more return on investment than Wheat Futures. However, SentinelOne is 1.63 times more volatile than Wheat Futures. It trades about 0.19 of its potential returns per unit of risk. Wheat Futures is currently generating about -0.1 per unit of risk. If you would invest 2,597 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 257.00 from holding SentinelOne or generate 9.9% 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. Wheat Futures
Performance |
Timeline |
SentinelOne |
Wheat Futures |
SentinelOne and Wheat Futures Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and Wheat Futures
The main advantage of trading using opposite SentinelOne and Wheat Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Wheat Futures 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 Wheat Futures will offset losses from the drop in Wheat Futures' long position.SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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