Correlation Between SentinelOne and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Growth Strategy 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 Growth Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Growth Strategy Fund, you can compare the effects of market volatilities on SentinelOne and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Growth Strategy.
Diversification Opportunities for SentinelOne and Growth Strategy
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Growth is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of SentinelOne i.e., SentinelOne and Growth Strategy go up and down completely randomly.
Pair Corralation between SentinelOne and Growth Strategy
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.56 times more return on investment than Growth Strategy. However, SentinelOne is 5.56 times more volatile than Growth Strategy Fund. It trades about 0.05 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.07 per unit of risk. If you would invest 1,524 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,284 from holding SentinelOne or generate 84.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Growth Strategy Fund
Performance |
| Timeline |
| SentinelOne |
| Growth Strategy |
SentinelOne and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Growth Strategy
The main advantage of trading using opposite SentinelOne and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Growth Strategy vs. Needham Aggressive Growth | Growth Strategy vs. Morningstar Aggressive Growth | Growth Strategy vs. Ab High Income | Growth Strategy vs. Copeland Risk Managed |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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