Correlation Between SentinelOne and Marathon Petroleum
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Marathon Petroleum 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 Marathon Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Marathon Petroleum, you can compare the effects of market volatilities on SentinelOne and Marathon Petroleum 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 Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Marathon Petroleum.
Diversification Opportunities for SentinelOne and Marathon Petroleum
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Marathon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Marathon Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Petroleum 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 Marathon Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Petroleum has no effect on the direction of SentinelOne i.e., SentinelOne and Marathon Petroleum go up and down completely randomly.
Pair Corralation between SentinelOne and Marathon Petroleum
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.2 times more return on investment than Marathon Petroleum. However, SentinelOne is 2.2 times more volatile than Marathon Petroleum. It trades about 0.05 of its potential returns per unit of risk. Marathon Petroleum is currently generating about 0.06 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 Against |
| Strength | Insignificant |
| Accuracy | 98.22% |
| Values | Daily Returns |
SentinelOne vs. Marathon Petroleum
Performance |
| Timeline |
| SentinelOne |
| Marathon Petroleum |
SentinelOne and Marathon Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Marathon Petroleum
The main advantage of trading using opposite SentinelOne and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Marathon Petroleum 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 Marathon Petroleum will offset losses from the drop in Marathon Petroleum's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Marathon Petroleum vs. TRAVEL LEISURE DL 01 | Marathon Petroleum vs. MACOM Technology Solutions | Marathon Petroleum vs. Vishay Intertechnology | Marathon Petroleum vs. Columbia Sportswear |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |