Correlation Between SentinelOne and Loft II
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Loft II 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 Loft II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Loft II Fundo, you can compare the effects of market volatilities on SentinelOne and Loft II 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 Loft II. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Loft II.
Diversification Opportunities for SentinelOne and Loft II
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and Loft is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Loft II Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loft II Fundo 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 Loft II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loft II Fundo has no effect on the direction of SentinelOne i.e., SentinelOne and Loft II go up and down completely randomly.
Pair Corralation between SentinelOne and Loft II
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.32 times less return on investment than Loft II. But when comparing it to its historical volatility, SentinelOne is 2.03 times less risky than Loft II. It trades about 0.12 of its potential returns per unit of risk. Loft II Fundo is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 914.00 in Loft II Fundo on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Loft II Fundo or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
SentinelOne vs. Loft II Fundo
Performance |
| Timeline |
| SentinelOne |
| Loft II Fundo |
SentinelOne and Loft II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Loft II
The main advantage of trading using opposite SentinelOne and Loft II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Loft II 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 Loft II will offset losses from the drop in Loft II's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Loft II vs. Energisa SA | Loft II vs. BTG Pactual Logstica | Loft II vs. Plano Plano Desenvolvimento | Loft II vs. Companhia Habitasul de |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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