Correlation Between SentinelOne and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both SentinelOne and PennantPark Floating 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 PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and PennantPark Floating Rate, you can compare the effects of market volatilities on SentinelOne and PennantPark Floating 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 PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and PennantPark Floating.
Diversification Opportunities for SentinelOne and PennantPark Floating
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and PennantPark is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate 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 PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of SentinelOne i.e., SentinelOne and PennantPark Floating go up and down completely randomly.
Pair Corralation between SentinelOne and PennantPark Floating
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the PennantPark Floating. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 3.24 times less risky than PennantPark Floating. The stock trades about -0.01 of its potential returns per unit of risk. The PennantPark Floating Rate is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 32,586 in PennantPark Floating Rate on November 8, 2024 and sell it today you would lose (28,413) from holding PennantPark Floating Rate or give up 87.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.33% |
| Values | Daily Returns |
SentinelOne vs. PennantPark Floating Rate
Performance |
| Timeline |
| SentinelOne |
| PennantPark Floating Rate |
SentinelOne and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and PennantPark Floating
The main advantage of trading using opposite SentinelOne and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| PennantPark Floating vs. First International Bank | PennantPark Floating vs. Mivtach Shamir | PennantPark Floating vs. Atreyu Capital Markets | PennantPark Floating vs. IDI Insurance |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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