Correlation Between SentinelOne and Jhancock Blue

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

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

Diversification Opportunities for SentinelOne and Jhancock Blue

0.89

Correlation Coefficient

SentinelOne  Jhancock Blue

Very poor diversification

The 3 months correlation between SentinelOne and Jhancock is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Jhancock Blue Chip in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Blue Chip 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 Jhancock Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Blue Chip has no effect on the direction of SentinelOne i.e., SentinelOne and Jhancock Blue go up and down completely randomly.

Pair Corralation between SentinelOne and Jhancock Blue

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Jhancock Blue. In addition to that, SentinelOne is 1.62 times more volatile than Jhancock Blue Chip. It trades about -0.1 of its total potential returns per unit of risk. Jhancock Blue Chip is currently generating about -0.11 per unit of volatility. If you would invest  6,246  in Jhancock Blue Chip on December 23, 2024 and sell it today you would lose (594.00) from holding Jhancock Blue Chip or give up 9.51% of portfolio value over 90 days.

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

SentinelOne  vs.  Jhancock Blue Chip

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.

Jhancock Blue Chip

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jhancock Blue Chip has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with SentinelOne and Jhancock Blue

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

The idea behind SentinelOne and Jhancock Blue Chip 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.