Correlation Between SentinelOne and Verint Systems
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Verint Systems 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 Verint Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Verint Systems, you can compare the effects of market volatilities on SentinelOne and Verint Systems 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 Verint Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Verint Systems.
Diversification Opportunities for SentinelOne and Verint Systems
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Verint is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Verint Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verint Systems 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 Verint Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verint Systems has no effect on the direction of SentinelOne i.e., SentinelOne and Verint Systems go up and down completely randomly.
Pair Corralation between SentinelOne and Verint Systems
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.4 times more return on investment than Verint Systems. However, SentinelOne is 1.4 times more volatile than Verint Systems. It trades about 0.05 of its potential returns per unit of risk. Verint Systems is currently generating about -0.03 per unit of risk. If you would invest 1,478 in SentinelOne on August 23, 2024 and sell it today you would earn a total of 1,229 from holding SentinelOne or generate 83.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Verint Systems
Performance |
| Timeline |
| SentinelOne |
| Verint Systems |
SentinelOne and Verint Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Verint Systems
The main advantage of trading using opposite SentinelOne and Verint Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Verint Systems 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 Verint Systems will offset losses from the drop in Verint Systems' long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Verint Systems vs. Evertec | Verint Systems vs. Consensus Cloud Solutions | Verint Systems vs. Global Blue Group | Verint Systems vs. NetScout Systems |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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