Correlation Between SentinelOne and SoFi Select
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SoFi Select 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 SoFi Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SoFi Select 500, you can compare the effects of market volatilities on SentinelOne and SoFi Select 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 SoFi Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SoFi Select.
Diversification Opportunities for SentinelOne and SoFi Select
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and SoFi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SoFi Select 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoFi Select 500 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 SoFi Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoFi Select 500 has no effect on the direction of SentinelOne i.e., SentinelOne and SoFi Select go up and down completely randomly.
Pair Corralation between SentinelOne and SoFi Select
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.96 times more return on investment than SoFi Select. However, SentinelOne is 3.96 times more volatile than SoFi Select 500. It trades about 0.05 of its potential returns per unit of risk. SoFi Select 500 is currently generating about 0.11 per unit of risk. If you would invest 1,537 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 1,271 from holding SentinelOne or generate 82.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. SoFi Select 500
Performance |
| Timeline |
| SentinelOne |
| SoFi Select 500 |
SentinelOne and SoFi Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and SoFi Select
The main advantage of trading using opposite SentinelOne and SoFi Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SoFi Select 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 SoFi Select will offset losses from the drop in SoFi Select's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| SoFi Select vs. Berry Petroleum Corp | SoFi Select vs. Comstock Resources | SoFi Select vs. SoFi Next 500 | SoFi Select vs. SM Energy Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |