Correlation Between SentinelOne and Elkhorn
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Elkhorn 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 Elkhorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Elkhorn, you can compare the effects of market volatilities on SentinelOne and Elkhorn 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 Elkhorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Elkhorn.
Diversification Opportunities for SentinelOne and Elkhorn
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Elkhorn is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Elkhorn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkhorn 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 Elkhorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkhorn has no effect on the direction of SentinelOne i.e., SentinelOne and Elkhorn go up and down completely randomly.
Pair Corralation between SentinelOne and Elkhorn
If you would invest 2,443 in SentinelOne on August 28, 2024 and sell it today you would earn a total of 350.00 from holding SentinelOne or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
SentinelOne vs. Elkhorn
Performance |
| Timeline |
| SentinelOne |
| Elkhorn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne and Elkhorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Elkhorn
The main advantage of trading using opposite SentinelOne and Elkhorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Elkhorn 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 Elkhorn will offset losses from the drop in Elkhorn's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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