Correlation Between SentinelOne and Shyft

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

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

Diversification Opportunities for SentinelOne and Shyft

0.55

Correlation Coefficient

SentinelOne  Shyft

Very weak diversification

The 3 months correlation between SentinelOne and Shyft is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of SentinelOne i.e., SentinelOne and Shyft go up and down completely randomly.

Pair Corralation between SentinelOne and Shyft

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.73 times more return on investment than Shyft. However, SentinelOne is 1.37 times less risky than Shyft. It trades about 0.16 of its potential returns per unit of risk. Shyft Group is currently generating about 0.04 per unit of risk. If you would invest  1,722  in SentinelOne on September 1, 2024 and sell it today you would earn a total of  1,073  from holding SentinelOne or generate 62.31% return on investment over 90 days.

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

SentinelOne  vs.  Shyft Group

SentinelOne

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, SentinelOne unveiled solid returns over the last few months and may actually be approaching a breakup point.

Shyft Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Shyft Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Shyft may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with SentinelOne and Shyft

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

The idea behind SentinelOne and Shyft Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.