Correlation Between SentinelOne and Oppenheimer Holdings
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Oppenheimer Holdings 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 Oppenheimer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Oppenheimer Holdings, you can compare the effects of market volatilities on SentinelOne and Oppenheimer Holdings 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 Oppenheimer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Oppenheimer Holdings.
Diversification Opportunities for SentinelOne and Oppenheimer Holdings
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Oppenheimer is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Oppenheimer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Holdings 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 Oppenheimer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and Oppenheimer Holdings go up and down completely randomly.
Pair Corralation between SentinelOne and Oppenheimer Holdings
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.58 times more return on investment than Oppenheimer Holdings. However, SentinelOne is 1.58 times more volatile than Oppenheimer Holdings. It trades about 0.13 of its potential returns per unit of risk. Oppenheimer Holdings is currently generating about 0.13 per unit of risk. If you would invest 2,609 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 184.00 from holding SentinelOne or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Oppenheimer Holdings
Performance |
| Timeline |
| SentinelOne |
| Oppenheimer Holdings |
SentinelOne and Oppenheimer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Oppenheimer Holdings
The main advantage of trading using opposite SentinelOne and Oppenheimer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Oppenheimer Holdings 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 Oppenheimer Holdings will offset losses from the drop in Oppenheimer Holdings' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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