Correlation Between SentinelOne and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Baillie Gifford 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 Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Baillie Gifford Growth, you can compare the effects of market volatilities on SentinelOne and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Baillie Gifford.
Diversification Opportunities for SentinelOne and Baillie Gifford
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Baillie is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Baillie Gifford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford 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 Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Growth has no effect on the direction of SentinelOne i.e., SentinelOne and Baillie Gifford go up and down completely randomly.
Pair Corralation between SentinelOne and Baillie Gifford
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.51 times less return on investment than Baillie Gifford. In addition to that, SentinelOne is 1.13 times more volatile than Baillie Gifford Growth. It trades about 0.17 of its total potential returns per unit of risk. Baillie Gifford Growth is currently generating about 0.47 per unit of volatility. If you would invest 21,700 in Baillie Gifford Growth on September 1, 2024 and sell it today you would earn a total of 5,400 from holding Baillie Gifford Growth or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Baillie Gifford Growth
Performance |
| Timeline |
| SentinelOne |
| Baillie Gifford Growth |
SentinelOne and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Baillie Gifford
The main advantage of trading using opposite SentinelOne and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Baillie Gifford vs. Scottish Mortgage Investment | Baillie Gifford vs. CT Private Equity | Baillie Gifford vs. Aberdeen New India |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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