Correlation Between SentinelOne and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ProShares UltraShort 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 ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ProShares UltraShort SP500, you can compare the effects of market volatilities on SentinelOne and ProShares UltraShort 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 ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ProShares UltraShort.
Diversification Opportunities for SentinelOne and ProShares UltraShort
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and ProShares is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ProShares UltraShort SP500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort 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 ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort has no effect on the direction of SentinelOne i.e., SentinelOne and ProShares UltraShort go up and down completely randomly.
Pair Corralation between SentinelOne and ProShares UltraShort
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the ProShares UltraShort. In addition to that, SentinelOne is 1.56 times more volatile than ProShares UltraShort SP500. It trades about -0.05 of its total potential returns per unit of risk. ProShares UltraShort SP500 is currently generating about 0.19 per unit of volatility. If you would invest 2,525 in ProShares UltraShort SP500 on January 26, 2024 and sell it today you would earn a total of 155.00 from holding ProShares UltraShort SP500 or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SentinelOne vs. ProShares UltraShort SP500
Performance |
| Timeline |
| SentinelOne |
| ProShares UltraShort |
SentinelOne and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ProShares UltraShort
The main advantage of trading using opposite SentinelOne and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ProShares UltraShort 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 ProShares UltraShort will offset losses from the drop in ProShares UltraShort's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
Check out your portfolio center.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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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