Correlation Between SentinelOne and UBS Fund
Can any of the company-specific risk be diversified away by investing in both SentinelOne and UBS Fund 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 UBS Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and UBS Fund Solutions, you can compare the effects of market volatilities on SentinelOne and UBS Fund 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 UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and UBS Fund.
Diversification Opportunities for SentinelOne and UBS Fund
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and UBS is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund Solutions 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 UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of SentinelOne i.e., SentinelOne and UBS Fund go up and down completely randomly.
Pair Corralation between SentinelOne and UBS Fund
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.27 times more return on investment than UBS Fund. However, SentinelOne is 3.27 times more volatile than UBS Fund Solutions. It trades about 0.15 of its potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.13 per unit of risk. If you would invest 2,392 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 416.00 from holding SentinelOne or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. UBS Fund Solutions
Performance |
| Timeline |
| SentinelOne |
| UBS Fund Solutions |
SentinelOne and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and UBS Fund
The main advantage of trading using opposite SentinelOne and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, UBS Fund 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 UBS Fund will offset losses from the drop in UBS Fund's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| UBS Fund vs. GraniteShares 3x Short | UBS Fund vs. WisdomTree Natural Gas | UBS Fund vs. Leverage Shares 3x | UBS Fund vs. WisdomTree Natural Gas |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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