Correlation Between Short Oil and Sentinel Multi-asset
Can any of the company-specific risk be diversified away by investing in both Short Oil and Sentinel Multi-asset 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 Short Oil and Sentinel Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Oil Gas and Sentinel Multi Asset Income, you can compare the effects of market volatilities on Short Oil and Sentinel Multi-asset 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 Short Oil with a short position of Sentinel Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Oil and Sentinel Multi-asset.
Diversification Opportunities for Short Oil and Sentinel Multi-asset
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Short and Sentinel is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Short Oil Gas and Sentinel Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Multi Asset and Short Oil 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 Short Oil Gas are associated (or correlated) with Sentinel Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Multi Asset has no effect on the direction of Short Oil i.e., Short Oil and Sentinel Multi-asset go up and down completely randomly.
Pair Corralation between Short Oil and Sentinel Multi-asset
Assuming the 90 days horizon Short Oil Gas is expected to generate 1.19 times more return on investment than Sentinel Multi-asset. However, Short Oil is 1.19 times more volatile than Sentinel Multi Asset Income. It trades about 0.15 of its potential returns per unit of risk. Sentinel Multi Asset Income is currently generating about -0.1 per unit of risk. If you would invest 1,385 in Short Oil Gas on January 13, 2025 and sell it today you would earn a total of 149.00 from holding Short Oil Gas or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Oil Gas vs. Sentinel Multi Asset Income
Performance |
| Timeline |
| Short Oil Gas |
| Sentinel Multi Asset |
Short Oil and Sentinel Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Oil and Sentinel Multi-asset
The main advantage of trading using opposite Short Oil and Sentinel Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Oil position performs unexpectedly, Sentinel Multi-asset 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 Sentinel Multi-asset will offset losses from the drop in Sentinel Multi-asset's long position.| Short Oil vs. Diversified Bond Fund | Short Oil vs. Elfun Diversified Fund | Short Oil vs. Blackrock Diversified Fixed | Short Oil vs. Massmutual Premier Diversified |
| Sentinel Multi-asset vs. Dfa Inflation Protected | Sentinel Multi-asset vs. Ab Bond Inflation | Sentinel Multi-asset vs. Loomis Sayles Inflation | Sentinel Multi-asset vs. Ab Bond Inflation |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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