Correlation Between SentinelOne and New Alternatives
Can any of the company-specific risk be diversified away by investing in both SentinelOne and New Alternatives 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 New Alternatives into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and New Alternatives Fund, you can compare the effects of market volatilities on SentinelOne and New Alternatives 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 New Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and New Alternatives.
Diversification Opportunities for SentinelOne and New Alternatives
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and New is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and New Alternatives Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Alternatives 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 New Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Alternatives has no effect on the direction of SentinelOne i.e., SentinelOne and New Alternatives go up and down completely randomly.
Pair Corralation between SentinelOne and New Alternatives
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.95 times more return on investment than New Alternatives. However, SentinelOne is 2.95 times more volatile than New Alternatives Fund. It trades about 0.03 of its potential returns per unit of risk. New Alternatives Fund is currently generating about 0.06 per unit of risk. If you would invest 2,550 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 245.00 from holding SentinelOne or generate 9.61% 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. New Alternatives Fund
Performance |
| Timeline |
| SentinelOne |
| New Alternatives |
SentinelOne and New Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and New Alternatives
The main advantage of trading using opposite SentinelOne and New Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, New Alternatives 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 New Alternatives will offset losses from the drop in New Alternatives' long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| New Alternatives vs. Guinness Atkinson Alternative | New Alternatives vs. Calvert Global Energy | New Alternatives vs. Portfolio 21 Global | New Alternatives vs. Green Century Balanced |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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