Correlation Between SentinelOne and Pagaya Technologies
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Pagaya Technologies 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 Pagaya Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Pagaya Technologies, you can compare the effects of market volatilities on SentinelOne and Pagaya Technologies 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 Pagaya Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Pagaya Technologies.
Diversification Opportunities for SentinelOne and Pagaya Technologies
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Pagaya is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Pagaya Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pagaya Technologies 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 Pagaya Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pagaya Technologies has no effect on the direction of SentinelOne i.e., SentinelOne and Pagaya Technologies go up and down completely randomly.
Pair Corralation between SentinelOne and Pagaya Technologies
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.52 times more return on investment than Pagaya Technologies. However, SentinelOne is 1.91 times less risky than Pagaya Technologies. It trades about 0.07 of its potential returns per unit of risk. Pagaya Technologies is currently generating about 0.02 per unit of risk. If you would invest 1,492 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 1,303 from holding SentinelOne or generate 87.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Pagaya Technologies
Performance |
| Timeline |
| SentinelOne |
| Pagaya Technologies |
SentinelOne and Pagaya Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Pagaya Technologies
The main advantage of trading using opposite SentinelOne and Pagaya Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Pagaya Technologies 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 Pagaya Technologies will offset losses from the drop in Pagaya Technologies' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Pagaya Technologies vs. Alarum Technologies | Pagaya Technologies vs. Arqit Quantum | Pagaya Technologies vs. Nutanix | Pagaya Technologies vs. Palo Alto Networks |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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