Correlation Between SentinelOne and Solution Financial
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Solution Financial 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 Solution Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Solution Financial, you can compare the effects of market volatilities on SentinelOne and Solution Financial 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 Solution Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Solution Financial.
Diversification Opportunities for SentinelOne and Solution Financial
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and Solution is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Solution Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solution Financial 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 Solution Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solution Financial has no effect on the direction of SentinelOne i.e., SentinelOne and Solution Financial go up and down completely randomly.
Pair Corralation between SentinelOne and Solution Financial
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.11 times more return on investment than Solution Financial. However, SentinelOne is 1.11 times more volatile than Solution Financial. It trades about 0.06 of its potential returns per unit of risk. Solution Financial is currently generating about 0.01 per unit of risk. If you would invest 1,507 in SentinelOne on August 27, 2024 and sell it today you would earn a total of 1,347 from holding SentinelOne or generate 89.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Solution Financial
Performance |
| Timeline |
| SentinelOne |
| Solution Financial |
SentinelOne and Solution Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Solution Financial
The main advantage of trading using opposite SentinelOne and Solution Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Solution Financial 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 Solution Financial will offset losses from the drop in Solution Financial's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| Solution Financial vs. United Rentals | Solution Financial vs. AerCap Holdings NV | Solution Financial vs. Fortress Transp Infra | Solution Financial vs. U Haul Holding |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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