Correlation Between SentinelOne and Eli Lilly
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Eli Lilly 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 Eli Lilly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Eli Lilly and, you can compare the effects of market volatilities on SentinelOne and Eli Lilly 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 Eli Lilly. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Eli Lilly.
Diversification Opportunities for SentinelOne and Eli Lilly
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Eli is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Eli Lilly and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eli Lilly 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 Eli Lilly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eli Lilly has no effect on the direction of SentinelOne i.e., SentinelOne and Eli Lilly go up and down completely randomly.
Pair Corralation between SentinelOne and Eli Lilly
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.89 times more return on investment than Eli Lilly. However, SentinelOne is 1.13 times less risky than Eli Lilly. It trades about 0.15 of its potential returns per unit of risk. Eli Lilly and is currently generating about 0.0 per unit of risk. If you would invest 2,601 in SentinelOne on September 2, 2024 and sell it today you would earn a total of 194.00 from holding SentinelOne or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Eli Lilly and
Performance |
| Timeline |
| SentinelOne |
| Eli Lilly |
SentinelOne and Eli Lilly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Eli Lilly
The main advantage of trading using opposite SentinelOne and Eli Lilly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Eli Lilly 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 Eli Lilly will offset losses from the drop in Eli Lilly's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |