Correlation Between SentinelOne and Sp 500
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Sp 500 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 Sp 500 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Sp 500 Index, you can compare the effects of market volatilities on SentinelOne and Sp 500 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 Sp 500. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Sp 500.
Diversification Opportunities for SentinelOne and Sp 500
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and SPFIX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Sp 500 Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sp 500 Index 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 Sp 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sp 500 Index has no effect on the direction of SentinelOne i.e., SentinelOne and Sp 500 go up and down completely randomly.
Pair Corralation between SentinelOne and Sp 500
Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.24 times more return on investment than Sp 500. However, SentinelOne is 4.24 times more volatile than Sp 500 Index. It trades about 0.05 of its potential returns per unit of risk. Sp 500 Index is currently generating about 0.09 per unit of risk. If you would invest 1,524 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,284 from holding SentinelOne or generate 84.25% 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. Sp 500 Index
Performance |
| Timeline |
| SentinelOne |
| Sp 500 Index |
SentinelOne and Sp 500 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Sp 500
The main advantage of trading using opposite SentinelOne and Sp 500 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Sp 500 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 Sp 500 will offset losses from the drop in Sp 500's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Sp 500 vs. Vanguard Total Stock | Sp 500 vs. Vanguard 500 Index | Sp 500 vs. Vanguard Total Stock | Sp 500 vs. Vanguard Total Stock |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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