Correlation Between SentinelOne and George Putnam
Can any of the company-specific risk be diversified away by investing in both SentinelOne and George Putnam 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 George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and George Putnam Fund, you can compare the effects of market volatilities on SentinelOne and George Putnam 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 George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and George Putnam.
Diversification Opportunities for SentinelOne and George Putnam
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and George is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and George Putnam Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam 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 George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam has no effect on the direction of SentinelOne i.e., SentinelOne and George Putnam go up and down completely randomly.
Pair Corralation between SentinelOne and George Putnam
Taking into account the 90-day investment horizon SentinelOne is expected to generate 6.59 times more return on investment than George Putnam. However, SentinelOne is 6.59 times more volatile than George Putnam Fund. It trades about 0.06 of its potential returns per unit of risk. George Putnam Fund is currently generating about 0.11 per unit of risk. If you would invest 1,425 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 1,429 from holding SentinelOne or generate 100.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. George Putnam Fund
Performance |
| Timeline |
| SentinelOne |
| George Putnam |
SentinelOne and George Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and George Putnam
The main advantage of trading using opposite SentinelOne and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| George Putnam vs. Putnam Equity Income | George Putnam vs. Putnam Tax Exempt | George Putnam vs. Putnam Floating Rate | George Putnam vs. Putnam High Yield |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |