Correlation Between SentinelOne and Smallcap Fund
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Smallcap Fund 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 Smallcap Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Smallcap Fund Fka, you can compare the effects of market volatilities on SentinelOne and Smallcap Fund 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 Smallcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Smallcap Fund.
Diversification Opportunities for SentinelOne and Smallcap Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Smallcap is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Smallcap Fund Fka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap Fund Fka 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 Smallcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap Fund Fka has no effect on the direction of SentinelOne i.e., SentinelOne and Smallcap Fund go up and down completely randomly.
Pair Corralation between SentinelOne and Smallcap Fund
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.74 times more return on investment than Smallcap Fund. However, SentinelOne is 2.74 times more volatile than Smallcap Fund Fka. It trades about 0.07 of its potential returns per unit of risk. Smallcap Fund Fka is currently generating about 0.04 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 Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
SentinelOne vs. Smallcap Fund Fka
Performance |
| Timeline |
| SentinelOne |
| Smallcap Fund Fka |
SentinelOne and Smallcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Smallcap Fund
The main advantage of trading using opposite SentinelOne and Smallcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Smallcap Fund 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 Smallcap Fund will offset losses from the drop in Smallcap Fund's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Smallcap Fund vs. Health Biotchnology Portfolio | Smallcap Fund vs. Live Oak Health | Smallcap Fund vs. Prudential Health Sciences | Smallcap Fund vs. Alger Health Sciences |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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