Correlation Between SentinelOne and Fodelia

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

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

Diversification Opportunities for SentinelOne and Fodelia

-0.15

Correlation Coefficient

SentinelOne  Fodelia

Good diversification

The 3 months correlation between SentinelOne and Fodelia is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Fodelia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fodelia 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 Fodelia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fodelia has no effect on the direction of SentinelOne i.e., SentinelOne and Fodelia go up and down completely randomly.

Pair Corralation between SentinelOne and Fodelia

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.17 times more return on investment than Fodelia. However, SentinelOne is 1.17 times more volatile than Fodelia. It trades about -0.02 of its potential returns per unit of risk. Fodelia is currently generating about -0.1 per unit of risk. If you would invest  2,243  in SentinelOne on October 23, 2024 and sell it today you would lose (10.00) from holding SentinelOne or give up 0.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	83.33%
Values	Daily Returns

SentinelOne  vs.  Fodelia

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 latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Fodelia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fodelia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Fodelia is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Fodelia

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

The idea behind SentinelOne and Fodelia 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.