Correlation Between SentinelOne and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Sterling Capital 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 Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Sterling Capital Behavioral, you can compare the effects of market volatilities on SentinelOne and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Sterling Capital.
Diversification Opportunities for SentinelOne and Sterling Capital
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Sterling is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Sterling Capital Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Beh 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Beh has no effect on the direction of SentinelOne i.e., SentinelOne and Sterling Capital go up and down completely randomly.
Pair Corralation between SentinelOne and Sterling Capital
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.18 times more return on investment than Sterling Capital. However, SentinelOne is 3.18 times more volatile than Sterling Capital Behavioral. It trades about 0.16 of its potential returns per unit of risk. Sterling Capital Behavioral is currently generating about -0.03 per unit of risk. If you would invest 1,722 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 1,073 from holding SentinelOne or generate 62.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
SentinelOne vs. Sterling Capital Behavioral
Performance |
| Timeline |
| SentinelOne |
| Sterling Capital Beh |
SentinelOne and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Sterling Capital
The main advantage of trading using opposite SentinelOne and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Sterling Capital vs. Hennessy Nerstone Mid | Sterling Capital vs. Palm Valley Capital | Sterling Capital vs. Amg River Road | Sterling Capital vs. Queens Road Small |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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