Correlation Between SentinelOne and SJM Holdings
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SJM Holdings 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 SJM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SJM Holdings Ltd, you can compare the effects of market volatilities on SentinelOne and SJM Holdings 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 SJM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SJM Holdings.
Diversification Opportunities for SentinelOne and SJM Holdings
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and SJM is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SJM Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SJM Holdings 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 SJM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SJM Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and SJM Holdings go up and down completely randomly.
Pair Corralation between SentinelOne and SJM Holdings
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.48 times more return on investment than SJM Holdings. However, SentinelOne is 2.09 times less risky than SJM Holdings. It trades about 0.16 of its potential returns per unit of risk. SJM Holdings Ltd is currently generating about -0.01 per unit of risk. If you would invest 1,683 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,110 from holding SentinelOne or generate 65.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. SJM Holdings Ltd
Performance |
| Timeline |
| SentinelOne |
| SJM Holdings |
SentinelOne and SJM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and SJM Holdings
The main advantage of trading using opposite SentinelOne and SJM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SJM Holdings 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 SJM Holdings will offset losses from the drop in SJM Holdings' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| SJM Holdings vs. Studio City International | SJM Holdings vs. Monarch Casino Resort | SJM Holdings vs. Playa Hotels Resorts | SJM Holdings vs. Las Vegas Sands |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |