Correlation Between SentinelOne and Platinum
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Platinum 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 Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Platinum, you can compare the effects of market volatilities on SentinelOne and Platinum 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 Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Platinum.
Diversification Opportunities for SentinelOne and Platinum
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Platinum is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum 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 Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum has no effect on the direction of SentinelOne i.e., SentinelOne and Platinum go up and down completely randomly.
Pair Corralation between SentinelOne and Platinum
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.77 times more return on investment than Platinum. However, SentinelOne is 1.77 times more volatile than Platinum. It trades about 0.1 of its potential returns per unit of risk. Platinum is currently generating about -0.03 per unit of risk. If you would invest 2,090 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 764.00 from holding SentinelOne or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.95% |
| Values | Daily Returns |
SentinelOne vs. Platinum
Performance |
| Timeline |
| SentinelOne |
| Platinum |
SentinelOne and Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Platinum
The main advantage of trading using opposite SentinelOne and Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Platinum 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 Platinum will offset losses from the drop in Platinum's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Platinum vs. Heating Oil | Platinum vs. Crude Oil | Platinum vs. Aluminum Futures | Platinum vs. Corn Futures |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |