Correlation Between SentinelOne and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Marker Therapeutics 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 Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Marker Therapeutics, you can compare the effects of market volatilities on SentinelOne and Marker Therapeutics 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 Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Marker Therapeutics.
Diversification Opportunities for SentinelOne and Marker Therapeutics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Marker is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics 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 Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of SentinelOne i.e., SentinelOne and Marker Therapeutics go up and down completely randomly.
Pair Corralation between SentinelOne and Marker Therapeutics
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.37 times more return on investment than Marker Therapeutics. However, SentinelOne is 2.74 times less risky than Marker Therapeutics. It trades about 0.17 of its potential returns per unit of risk. Marker Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Marker Therapeutics
Performance |
| Timeline |
| SentinelOne |
| Marker Therapeutics |
SentinelOne and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Marker Therapeutics
The main advantage of trading using opposite SentinelOne and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Marker Therapeutics 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 Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Marker Therapeutics vs. Lumos Pharma | Marker Therapeutics vs. Exicure | Marker Therapeutics vs. Protagenic Therapeutics | Marker Therapeutics vs. Pmv Pharmaceuticals |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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