Correlation Between SentinelOne and ONEOK
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ONEOK 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 ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ONEOK Inc, you can compare the effects of market volatilities on SentinelOne and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ONEOK.
Diversification Opportunities for SentinelOne and ONEOK
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and ONEOK is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK Inc has no effect on the direction of SentinelOne i.e., SentinelOne and ONEOK go up and down completely randomly.
Pair Corralation between SentinelOne and ONEOK
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.55 times more return on investment than ONEOK. However, SentinelOne is 2.55 times more volatile than ONEOK Inc. It trades about 0.05 of its potential returns per unit of risk. ONEOK Inc is currently generating about 0.1 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 Together |
| Strength | Strong |
| Accuracy | 98.21% |
| Values | Daily Returns |
SentinelOne vs. ONEOK Inc
Performance |
| Timeline |
| SentinelOne |
| ONEOK Inc |
SentinelOne and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ONEOK
The main advantage of trading using opposite SentinelOne and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| ONEOK vs. BORR DRILLING NEW | ONEOK vs. Apollo Investment Corp | ONEOK vs. New Residential Investment | ONEOK vs. Meiko Electronics 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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