Correlation Between SentinelOne and CELR
Can any of the company-specific risk be diversified away by investing in both SentinelOne and CELR 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 CELR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and CELR, you can compare the effects of market volatilities on SentinelOne and CELR 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 CELR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and CELR.
Diversification Opportunities for SentinelOne and CELR
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and CELR is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CELR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CELR 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 CELR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CELR has no effect on the direction of SentinelOne i.e., SentinelOne and CELR go up and down completely randomly.
Pair Corralation between SentinelOne and CELR
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.34 times more return on investment than CELR. However, SentinelOne is 2.95 times less risky than CELR. It trades about -0.14 of its potential returns per unit of risk. CELR is currently generating about -0.06 per unit of risk. If you would invest 2,795 in SentinelOne on November 28, 2024 and sell it today you would lose (607.00) from holding SentinelOne or give up 21.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 92.06% |
Values | Daily Returns |
SentinelOne vs. CELR
Performance |
Timeline |
SentinelOne |
CELR |
SentinelOne and CELR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and CELR
The main advantage of trading using opposite SentinelOne and CELR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, CELR 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 CELR will offset losses from the drop in CELR's long position.SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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