Correlation Between SentinelOne and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Manulife Financial 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 Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Manulife Financial Corp, you can compare the effects of market volatilities on SentinelOne and Manulife Financial 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 Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Manulife Financial.
Diversification Opportunities for SentinelOne and Manulife Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Manulife is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp 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 Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial Corp has no effect on the direction of SentinelOne i.e., SentinelOne and Manulife Financial go up and down completely randomly.
Pair Corralation between SentinelOne and Manulife Financial
Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.67 times more return on investment than Manulife Financial. However, SentinelOne is 4.67 times more volatile than Manulife Financial Corp. It trades about 0.17 of its potential returns per unit of risk. Manulife Financial Corp is currently generating about -0.22 per unit of risk. If you would invest 2,626 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 228.00 from holding SentinelOne or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Manulife Financial Corp
Performance |
| Timeline |
| SentinelOne |
| Manulife Financial Corp |
SentinelOne and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Manulife Financial
The main advantage of trading using opposite SentinelOne and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Manulife Financial 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 Manulife Financial will offset losses from the drop in Manulife Financial's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Manulife Financial vs. Manulife Financial Corp | Manulife Financial vs. Manulife Financial Corp | Manulife Financial vs. Manulife Financial Corp | Manulife Financial vs. Great West Lifeco |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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