Correlation Between SentinelOne and Themes Cybersecurity
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Themes Cybersecurity 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 Themes Cybersecurity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Themes Cybersecurity ETF, you can compare the effects of market volatilities on SentinelOne and Themes Cybersecurity 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 Themes Cybersecurity. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Themes Cybersecurity.
Diversification Opportunities for SentinelOne and Themes Cybersecurity
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and Themes is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Themes Cybersecurity ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Cybersecurity ETF 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 Themes Cybersecurity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Cybersecurity ETF has no effect on the direction of SentinelOne i.e., SentinelOne and Themes Cybersecurity go up and down completely randomly.
Pair Corralation between SentinelOne and Themes Cybersecurity
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.77 times more return on investment than Themes Cybersecurity. However, SentinelOne is 1.77 times more volatile than Themes Cybersecurity ETF. It trades about 0.11 of its potential returns per unit of risk. Themes Cybersecurity ETF is currently generating about 0.08 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% 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. Themes Cybersecurity ETF
Performance |
| Timeline |
| SentinelOne |
| Themes Cybersecurity ETF |
SentinelOne and Themes Cybersecurity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Themes Cybersecurity
The main advantage of trading using opposite SentinelOne and Themes Cybersecurity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Themes Cybersecurity 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 Themes Cybersecurity will offset losses from the drop in Themes Cybersecurity's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Themes Cybersecurity vs. Freedom Day Dividend | Themes Cybersecurity vs. Franklin Templeton ETF | Themes Cybersecurity vs. iShares MSCI China | Themes Cybersecurity vs. Tidal Trust II |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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