Correlation Between SentinelOne and Whirlpool
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Whirlpool 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 Whirlpool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Whirlpool SA, you can compare the effects of market volatilities on SentinelOne and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Whirlpool.
Diversification Opportunities for SentinelOne and Whirlpool
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Whirlpool is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Whirlpool SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool SA 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool SA has no effect on the direction of SentinelOne i.e., SentinelOne and Whirlpool go up and down completely randomly.
Pair Corralation between SentinelOne and Whirlpool
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.06 times more return on investment than Whirlpool. However, SentinelOne is 2.06 times more volatile than Whirlpool SA. It trades about 0.16 of its potential returns per unit of risk. Whirlpool SA is currently generating about -0.16 per unit of risk. If you would invest 2,412 in SentinelOne on August 26, 2024 and sell it today you would earn a total of 442.00 from holding SentinelOne or generate 18.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. Whirlpool SA
Performance |
| Timeline |
| SentinelOne |
| Whirlpool SA |
SentinelOne and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Whirlpool
The main advantage of trading using opposite SentinelOne and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Whirlpool vs. Lupatech SA | Whirlpool vs. Rossi Residencial SA | Whirlpool vs. Fras le SA | Whirlpool vs. Clave Indices De |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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