Correlation Between SentinelOne and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Loomis Sayles 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 Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Loomis Sayles Small, you can compare the effects of market volatilities on SentinelOne and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Loomis Sayles.
Diversification Opportunities for SentinelOne and Loomis Sayles
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Loomis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Small has no effect on the direction of SentinelOne i.e., SentinelOne and Loomis Sayles go up and down completely randomly.
Pair Corralation between SentinelOne and Loomis Sayles
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.35 times less return on investment than Loomis Sayles. In addition to that, SentinelOne is 1.52 times more volatile than Loomis Sayles Small. It trades about 0.17 of its total potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.34 per unit of volatility. If you would invest 2,481 in Loomis Sayles Small on September 1, 2024 and sell it today you would earn a total of 316.00 from holding Loomis Sayles Small or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Loomis Sayles Small
Performance |
| Timeline |
| SentinelOne |
| Loomis Sayles Small |
SentinelOne and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Loomis Sayles
The main advantage of trading using opposite SentinelOne and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Loomis Sayles vs. Mainstay Large Cap | Loomis Sayles vs. Mfs Value Fund | Loomis Sayles vs. Harbor Capital Appreciation | Loomis Sayles vs. Goldman Sachs Small |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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