Correlation Between SentinelOne and UBS PF

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

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

Diversification Opportunities for SentinelOne and UBS PF

-0.72

Correlation Coefficient

SentinelOne  UBS PF

Pay attention - limited upside

The 3 months correlation between SentinelOne and UBS is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and UBS PF Swiss in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS PF Swiss 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 UBS PF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS PF Swiss has no effect on the direction of SentinelOne i.e., SentinelOne and UBS PF go up and down completely randomly.

Pair Corralation between SentinelOne and UBS PF

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the UBS PF. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.25 times less risky than UBS PF. The stock trades about -0.02 of its potential returns per unit of risk. The UBS PF Swiss is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  15,300  in UBS PF Swiss on October 22, 2024 and sell it today you would earn a total of  540.00  from holding UBS PF Swiss or generate 3.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	84.21%
Values	Daily Returns

SentinelOne  vs.  UBS PF Swiss

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.

UBS PF Swiss

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UBS PF Swiss are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal basic indicators, UBS PF may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SentinelOne and UBS PF

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

The idea behind SentinelOne and UBS PF Swiss 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.