Correlation Between SentinelOne and IShares Corp

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

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

Diversification Opportunities for SentinelOne and IShares Corp

-0.38

Correlation Coefficient

SentinelOne  IShares Corp

Very good diversification

The 3 months correlation between SentinelOne and IShares is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and iShares Corp Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Corp Bond 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 IShares Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Corp Bond has no effect on the direction of SentinelOne i.e., SentinelOne and IShares Corp go up and down completely randomly.

Pair Corralation between SentinelOne and IShares Corp

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.1 times more return on investment than IShares Corp. However, SentinelOne is 2.1 times more volatile than iShares Corp Bond. It trades about -0.02 of its potential returns per unit of risk. iShares Corp Bond is currently generating about -0.24 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	77.78%
Values	Daily Returns

SentinelOne  vs.  iShares Corp Bond

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.

iShares Corp Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares Corp Bond has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, IShares Corp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with SentinelOne and IShares Corp

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

The idea behind SentinelOne and iShares Corp Bond 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.