Correlation Between SentinelOne and Energy Fund
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Energy 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 Energy Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Energy Fund Investor, you can compare the effects of market volatilities on SentinelOne and Energy 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 Energy Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Energy Fund.
Diversification Opportunities for SentinelOne and Energy Fund
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Energy is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Energy Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Fund Investor 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 Energy Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Fund Investor has no effect on the direction of SentinelOne i.e., SentinelOne and Energy Fund go up and down completely randomly.
Pair Corralation between SentinelOne and Energy Fund
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.69 times more return on investment than Energy Fund. However, SentinelOne is 2.69 times more volatile than Energy Fund Investor. It trades about 0.03 of its potential returns per unit of risk. Energy Fund Investor is currently generating about 0.04 per unit of risk. If you would invest 2,550 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 245.00 from holding SentinelOne or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
SentinelOne vs. Energy Fund Investor
Performance |
| Timeline |
| SentinelOne |
| Energy Fund Investor |
SentinelOne and Energy Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Energy Fund
The main advantage of trading using opposite SentinelOne and Energy Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Energy 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 Energy Fund will offset losses from the drop in Energy Fund's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Energy Fund vs. Basic Materials Fund | Energy Fund vs. Electronics Fund Investor | Energy Fund vs. Health Care Fund | Energy Fund vs. Precious Metals Fund |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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