Correlation Between SentinelOne and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Federated Strategic 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 Federated Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Federated Strategic Value, you can compare the effects of market volatilities on SentinelOne and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Federated Strategic.
Diversification Opportunities for SentinelOne and Federated Strategic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Federated is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of SentinelOne i.e., SentinelOne and Federated Strategic go up and down completely randomly.
Pair Corralation between SentinelOne and Federated Strategic
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.16 times more return on investment than Federated Strategic. However, SentinelOne is 5.16 times more volatile than Federated Strategic Value. It trades about 0.17 of its potential returns per unit of risk. Federated Strategic Value is currently generating about 0.21 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Federated Strategic Value
Performance |
| Timeline |
| SentinelOne |
| Federated Strategic Value |
SentinelOne and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Federated Strategic
The main advantage of trading using opposite SentinelOne and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Federated Strategic vs. Federated Emerging Market | Federated Strategic vs. Federated Mdt All | Federated Strategic vs. Federated Mdt Balanced | Federated Strategic vs. Federated Global Allocation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |