Correlation Between SentinelOne and IShares SP
Can any of the company-specific risk be diversified away by investing in both SentinelOne and IShares SP 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 IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and iShares SP 500, you can compare the effects of market volatilities on SentinelOne and IShares SP 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and IShares SP.
Diversification Opportunities for SentinelOne and IShares SP
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SentinelOne and IShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and iShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP 500 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 IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP 500 has no effect on the direction of SentinelOne i.e., SentinelOne and IShares SP go up and down completely randomly.
Pair Corralation between SentinelOne and IShares SP
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.74 times more return on investment than IShares SP. However, SentinelOne is 2.74 times more volatile than iShares SP 500. It trades about 0.11 of its potential returns per unit of risk. iShares SP 500 is currently generating about 0.13 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% 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. iShares SP 500
Performance |
| Timeline |
| SentinelOne |
| iShares SP 500 |
SentinelOne and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and IShares SP
The main advantage of trading using opposite SentinelOne and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |