Correlation Between SentinelOne and Andersons

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Andersons 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 Andersons into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and The Andersons, you can compare the effects of market volatilities on SentinelOne and Andersons 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 Andersons. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Andersons.

Diversification Opportunities for SentinelOne and Andersons

-0.34

Correlation Coefficient

SentinelOne  Andersons

Very good diversification

The 3 months correlation between SentinelOne and Andersons is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and The Andersons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andersons 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 Andersons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andersons has no effect on the direction of SentinelOne i.e., SentinelOne and Andersons go up and down completely randomly.

Pair Corralation between SentinelOne and Andersons

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Andersons. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.2 times less risky than Andersons. The stock trades about -0.11 of its potential returns per unit of risk. The The Andersons is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,961  in The Andersons on December 30, 2024 and sell it today you would earn a total of  365.00  from holding The Andersons or generate 9.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  The Andersons

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Andersons

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in The Andersons are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal fundamental indicators, Andersons may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with SentinelOne and Andersons

The main advantage of trading using opposite SentinelOne and Andersons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Andersons 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 Andersons will offset losses from the drop in Andersons' long position.

The idea behind SentinelOne and The Andersons pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.