Correlation Between SentinelOne and Putnam Municipal
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Putnam Municipal 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 Putnam Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Putnam Municipal Opportunities, you can compare the effects of market volatilities on SentinelOne and Putnam Municipal 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 Putnam Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Putnam Municipal.
Diversification Opportunities for SentinelOne and Putnam Municipal
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Putnam is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Putnam Municipal Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Municipal Opp 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 Putnam Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Municipal Opp has no effect on the direction of SentinelOne i.e., SentinelOne and Putnam Municipal go up and down completely randomly.
Pair Corralation between SentinelOne and Putnam Municipal
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.69 times more return on investment than Putnam Municipal. However, SentinelOne is 3.69 times more volatile than Putnam Municipal Opportunities. It trades about 0.06 of its potential returns per unit of risk. Putnam Municipal Opportunities is currently generating about 0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Putnam Municipal Opportunities
Performance |
| Timeline |
| SentinelOne |
| Putnam Municipal Opp |
SentinelOne and Putnam Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Putnam Municipal
The main advantage of trading using opposite SentinelOne and Putnam Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Putnam Municipal 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 Putnam Municipal will offset losses from the drop in Putnam Municipal's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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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 Stocks Directory module to find actively traded stocks across global markets.
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