Correlation Between SentinelOne and Electronics Fund
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Electronics 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 Electronics Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Electronics Fund Class, you can compare the effects of market volatilities on SentinelOne and Electronics 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 Electronics Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Electronics Fund.
Diversification Opportunities for SentinelOne and Electronics Fund
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and Electronics is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Electronics Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronics Fund Class 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 Electronics Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronics Fund Class has no effect on the direction of SentinelOne i.e., SentinelOne and Electronics Fund go up and down completely randomly.
Pair Corralation between SentinelOne and Electronics Fund
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.83 times more return on investment than Electronics Fund. However, SentinelOne is 1.83 times more volatile than Electronics Fund Class. It trades about 0.04 of its potential returns per unit of risk. Electronics Fund Class is currently generating about 0.05 per unit of risk. If you would invest 1,525 in SentinelOne on November 1, 2024 and sell it today you would earn a total of 842.00 from holding SentinelOne or generate 55.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SentinelOne vs. Electronics Fund Class
Performance |
| Timeline |
| SentinelOne |
| Electronics Fund Class |
SentinelOne and Electronics Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Electronics Fund
The main advantage of trading using opposite SentinelOne and Electronics Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Electronics 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 Electronics Fund will offset losses from the drop in Electronics Fund's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Zscaler |
| Electronics Fund vs. Touchstone Large Cap | Electronics Fund vs. Blackrock Large Cap | Electronics Fund vs. Guidemark Large Cap | Electronics Fund vs. Calvert Large Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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