Correlation Between SentinelOne and McCormick Company
Can any of the company-specific risk be diversified away by investing in both SentinelOne and McCormick Company 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 McCormick Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and McCormick Company Incorporated, you can compare the effects of market volatilities on SentinelOne and McCormick Company 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 McCormick Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and McCormick Company.
Diversification Opportunities for SentinelOne and McCormick Company
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and McCormick is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and McCormick Company Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McCormick Company 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 McCormick Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McCormick Company has no effect on the direction of SentinelOne i.e., SentinelOne and McCormick Company go up and down completely randomly.
Pair Corralation between SentinelOne and McCormick Company
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.12 times more return on investment than McCormick Company. However, SentinelOne is 2.12 times more volatile than McCormick Company Incorporated. It trades about 0.13 of its potential returns per unit of risk. McCormick Company Incorporated is currently generating about -0.08 per unit of risk. If you would invest 2,609 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 179.00 from holding SentinelOne or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. McCormick Company Incorporated
Performance |
| Timeline |
| SentinelOne |
| McCormick Company |
SentinelOne and McCormick Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and McCormick Company
The main advantage of trading using opposite SentinelOne and McCormick Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, McCormick Company 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 McCormick Company will offset losses from the drop in McCormick Company's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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