Correlation Between SentinelOne and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SPDR Barclays 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 SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SPDR Barclays Intermediate, you can compare the effects of market volatilities on SentinelOne and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SPDR Barclays.
Diversification Opportunities for SentinelOne and SPDR Barclays
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and SPDR is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SPDR Barclays Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Interm 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 SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Interm has no effect on the direction of SentinelOne i.e., SentinelOne and SPDR Barclays go up and down completely randomly.
Pair Corralation between SentinelOne and SPDR Barclays
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the SPDR Barclays. In addition to that, SentinelOne is 8.25 times more volatile than SPDR Barclays Intermediate. It trades about -0.11 of its total potential returns per unit of risk. SPDR Barclays Intermediate is currently generating about -0.17 per unit of volatility. If you would invest 3,252 in SPDR Barclays Intermediate on January 25, 2024 and sell it today you would lose (32.00) from holding SPDR Barclays Intermediate or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. SPDR Barclays Intermediate
Performance |
| Timeline |
| SentinelOne |
| SPDR Barclays Interm |
SentinelOne and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and SPDR Barclays
The main advantage of trading using opposite SentinelOne and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Cloudflare |
| SPDR Barclays vs. iShares iBonds 2026 | SPDR Barclays vs. iShares iBonds Dec | SPDR Barclays vs. iShares 25 Year |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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