Correlation Between SentinelOne and Mfs Growth
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Mfs Growth 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 Mfs Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Mfs Growth Allocation, you can compare the effects of market volatilities on SentinelOne and Mfs Growth 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 Mfs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Mfs Growth.
Diversification Opportunities for SentinelOne and Mfs Growth
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Mfs is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Mfs Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Growth Allocation 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 Mfs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Growth Allocation has no effect on the direction of SentinelOne i.e., SentinelOne and Mfs Growth go up and down completely randomly.
Pair Corralation between SentinelOne and Mfs Growth
Taking into account the 90-day investment horizon SentinelOne is expected to generate 6.12 times more return on investment than Mfs Growth. However, SentinelOne is 6.12 times more volatile than Mfs Growth Allocation. It trades about 0.05 of its potential returns per unit of risk. Mfs Growth Allocation is currently generating about 0.08 per unit of risk. If you would invest 1,537 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 1,271 from holding SentinelOne or generate 82.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Mfs Growth Allocation
Performance |
| Timeline |
| SentinelOne |
| Mfs Growth Allocation |
SentinelOne and Mfs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Mfs Growth
The main advantage of trading using opposite SentinelOne and Mfs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Mfs Growth 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 Mfs Growth will offset losses from the drop in Mfs Growth's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Mfs Growth vs. Hartford Healthcare Hls | Mfs Growth vs. Lord Abbett Health | Mfs Growth vs. Blackrock Health Sciences | Mfs Growth vs. Health Care Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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