Correlation Between SentinelOne and ATT
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ATT 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 ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ATT Inc, you can compare the effects of market volatilities on SentinelOne and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ATT.
Diversification Opportunities for SentinelOne and ATT
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SentinelOne and ATT is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of SentinelOne i.e., SentinelOne and ATT go up and down completely randomly.
Pair Corralation between SentinelOne and ATT
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.78 times more return on investment than ATT. However, SentinelOne is 2.78 times more volatile than ATT Inc. It trades about 0.03 of its potential returns per unit of risk. ATT Inc is currently generating about 0.05 per unit of risk. If you would invest 2,112 in SentinelOne on January 25, 2024 and sell it today you would earn a total of 55.50 from holding SentinelOne or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. ATT Inc
Performance |
| Timeline |
| SentinelOne |
| ATT Inc |
SentinelOne and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and ATT
The main advantage of trading using opposite SentinelOne and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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