Correlation Between SentinelOne and Pinnacle Sherman

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

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

Diversification Opportunities for SentinelOne and Pinnacle Sherman

0.61

Correlation Coefficient

SentinelOne  Pinnacle Sherman

Poor diversification

The 3 months correlation between SentinelOne and Pinnacle is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Pinnacle Sherman Multi Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinnacle Sherman Multi 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 Pinnacle Sherman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinnacle Sherman Multi has no effect on the direction of SentinelOne i.e., SentinelOne and Pinnacle Sherman go up and down completely randomly.

Pair Corralation between SentinelOne and Pinnacle Sherman

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.46 times more return on investment than Pinnacle Sherman. However, SentinelOne is 1.46 times more volatile than Pinnacle Sherman Multi Strategy. It trades about -0.17 of its potential returns per unit of risk. Pinnacle Sherman Multi Strategy is currently generating about -0.25 per unit of risk. If you would invest  2,467  in SentinelOne on October 8, 2024 and sell it today you would lose (186.00) from holding SentinelOne or give up 7.54% of portfolio value over 90 days.

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

SentinelOne  vs.  Pinnacle Sherman Multi Strateg

SentinelOne

Risk-Adjusted Performance

0 of 100

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 comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pinnacle Sherman Multi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pinnacle Sherman Multi Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Pinnacle Sherman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Pinnacle Sherman

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

The idea behind SentinelOne and Pinnacle Sherman Multi Strategy 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.