Correlation Between SentinelOne and GraniteShares
Can any of the company-specific risk be diversified away by investing in both SentinelOne and GraniteShares 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 GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and GraniteShares 3x Short, you can compare the effects of market volatilities on SentinelOne and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and GraniteShares.
Diversification Opportunities for SentinelOne and GraniteShares
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and GraniteShares is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short 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 GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of SentinelOne i.e., SentinelOne and GraniteShares go up and down completely randomly.
Pair Corralation between SentinelOne and GraniteShares
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.49 times more return on investment than GraniteShares. However, SentinelOne is 2.04 times less risky than GraniteShares. It trades about 0.12 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.24 per unit of risk. If you would invest 2,647 in SentinelOne on August 31, 2024 and sell it today you would earn a total of 161.00 from holding SentinelOne or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. GraniteShares 3x Short
Performance |
| Timeline |
| SentinelOne |
| GraniteShares 3x Short |
SentinelOne and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and GraniteShares
The main advantage of trading using opposite SentinelOne and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| GraniteShares vs. Scottish Mortgage Investment | GraniteShares vs. VinaCapital Vietnam Opportunity | GraniteShares vs. Edinburgh Worldwide Investment | GraniteShares vs. Baillie Gifford Growth |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |