Correlation Between SentinelOne and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Martin Marietta 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 Martin Marietta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Martin Marietta Materials, you can compare the effects of market volatilities on SentinelOne and Martin Marietta 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 Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Martin Marietta.
Diversification Opportunities for SentinelOne and Martin Marietta
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and Martin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials 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 Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of SentinelOne i.e., SentinelOne and Martin Marietta go up and down completely randomly.
Pair Corralation between SentinelOne and Martin Marietta
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.77 times more return on investment than Martin Marietta. However, SentinelOne is 1.77 times more volatile than Martin Marietta Materials. It trades about 0.1 of its potential returns per unit of risk. Martin Marietta Materials is currently generating about 0.04 per unit of risk. If you would invest 2,090 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 764.00 from holding SentinelOne or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.92% |
| Values | Daily Returns |
SentinelOne vs. Martin Marietta Materials
Performance |
| Timeline |
| SentinelOne |
| Martin Marietta Materials |
SentinelOne and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Martin Marietta
The main advantage of trading using opposite SentinelOne and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Martin Marietta vs. Mitsui Chemicals | Martin Marietta vs. OFFICE DEPOT | Martin Marietta vs. Quaker Chemical | Martin Marietta vs. Sekisui Chemical Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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