Correlation Between SentinelOne and American Funds
Can any of the company-specific risk be diversified away by investing in both SentinelOne and American Funds 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 American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and American Funds 2040, you can compare the effects of market volatilities on SentinelOne and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and American Funds.
Diversification Opportunities for SentinelOne and American Funds
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and American is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and American Funds 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2040 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2040 has no effect on the direction of SentinelOne i.e., SentinelOne and American Funds go up and down completely randomly.
Pair Corralation between SentinelOne and American Funds
Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.98 times more return on investment than American Funds. However, SentinelOne is 4.98 times more volatile than American Funds 2040. It trades about 0.07 of its potential returns per unit of risk. American Funds 2040 is currently generating about 0.14 per unit of risk. If you would invest 1,909 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 945.00 from holding SentinelOne or generate 49.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. American Funds 2040
Performance |
| Timeline |
| SentinelOne |
| American Funds 2040 |
SentinelOne and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and American Funds
The main advantage of trading using opposite SentinelOne and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| American Funds vs. Franklin Growth Opportunities | American Funds vs. Qs Moderate Growth | American Funds vs. Rational Defensive Growth | American Funds vs. Mid Cap Growth |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |