Correlation Between SentinelOne and PENN Entertainment,

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

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

Diversification Opportunities for SentinelOne and PENN Entertainment,

-0.19

Correlation Coefficient

SentinelOne  PENN Entertainment,

Good diversification

The 3 months correlation between SentinelOne and PENN is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and PENN Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment, 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 PENN Entertainment,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN Entertainment, has no effect on the direction of SentinelOne i.e., SentinelOne and PENN Entertainment, go up and down completely randomly.

Pair Corralation between SentinelOne and PENN Entertainment,

Taking into account the 90-day investment horizon SentinelOne is expected to generate 14.22 times less return on investment than PENN Entertainment,. In addition to that, SentinelOne is 1.91 times more volatile than PENN Entertainment,. It trades about 0.01 of its total potential returns per unit of risk. PENN Entertainment, is currently generating about 0.15 per unit of volatility. If you would invest  1,027  in PENN Entertainment, on October 7, 2024 and sell it today you would earn a total of  152.00  from holding PENN Entertainment, or generate 14.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

SentinelOne  vs.  PENN Entertainment,

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.

PENN Entertainment,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PENN Entertainment, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, PENN Entertainment, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and PENN Entertainment,

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

The idea behind SentinelOne and PENN Entertainment, 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 CEOs Directory module to screen CEOs from public companies around the world.