Correlation Between SentinelOne and Capital Growth
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Capital Growth 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 Capital Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Capital Growth Fund, you can compare the effects of market volatilities on SentinelOne and Capital Growth 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 Capital Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Capital Growth.
Diversification Opportunities for SentinelOne and Capital Growth
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Capital is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Capital Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Growth 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 Capital Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Growth has no effect on the direction of SentinelOne i.e., SentinelOne and Capital Growth go up and down completely randomly.
Pair Corralation between SentinelOne and Capital Growth
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.16 times less return on investment than Capital Growth. In addition to that, SentinelOne is 3.21 times more volatile than Capital Growth Fund. It trades about 0.01 of its total potential returns per unit of risk. Capital Growth Fund is currently generating about 0.04 per unit of volatility. If you would invest 1,198 in Capital Growth Fund on November 9, 2024 and sell it today you would earn a total of 115.00 from holding Capital Growth Fund or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Capital Growth Fund
Performance |
| Timeline |
| SentinelOne |
| Capital Growth |
SentinelOne and Capital Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Capital Growth
The main advantage of trading using opposite SentinelOne and Capital Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Capital Growth 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 Capital Growth will offset losses from the drop in Capital Growth's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Capital Growth vs. Lord Abbett Diversified | Capital Growth vs. Principal Lifetime Hybrid | Capital Growth vs. Blrc Sgy Mnp | Capital Growth vs. Rbb Fund |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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