Correlation Between SentinelOne and Icon Bond

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

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

Diversification Opportunities for SentinelOne and Icon Bond

-0.44

Correlation Coefficient

SentinelOne  Icon Bond

Very good diversification

The 3 months correlation between SentinelOne and Icon is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Icon Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Bond Fund 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 Icon Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Bond Fund has no effect on the direction of SentinelOne i.e., SentinelOne and Icon Bond go up and down completely randomly.

Pair Corralation between SentinelOne and Icon Bond

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Icon Bond. In addition to that, SentinelOne is 17.95 times more volatile than Icon Bond Fund. It trades about -0.11 of its total potential returns per unit of risk. Icon Bond Fund is currently generating about 0.2 per unit of volatility. If you would invest  856.00  in Icon Bond Fund on December 29, 2024 and sell it today you would earn a total of  14.00  from holding Icon Bond Fund or generate 1.64% return on investment over 90 days.

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

SentinelOne  vs.  Icon Bond Fund

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.

Icon Bond Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Bond Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Icon Bond 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 Icon Bond

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

The idea behind SentinelOne and Icon Bond Fund 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.