Correlation Between SentinelOne and Horizon Kinetics

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

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

Diversification Opportunities for SentinelOne and Horizon Kinetics

0.26

Correlation Coefficient

SentinelOne  Horizon Kinetics

Modest diversification

The 3 months correlation between SentinelOne and Horizon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Horizon Kinetics Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Medical 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 Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Medical has no effect on the direction of SentinelOne i.e., SentinelOne and Horizon Kinetics go up and down completely randomly.

Pair Corralation between SentinelOne and Horizon Kinetics

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Horizon Kinetics. In addition to that, SentinelOne is 5.07 times more volatile than Horizon Kinetics Medical. It trades about -0.2 of its total potential returns per unit of risk. Horizon Kinetics Medical is currently generating about 0.19 per unit of volatility. If you would invest  2,870  in Horizon Kinetics Medical on March 14, 2024 and sell it today you would earn a total of  83.00  from holding Horizon Kinetics Medical or generate 2.89% 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.  Horizon Kinetics Medical

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Horizon Kinetics Medical

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Horizon Kinetics Medical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, Horizon Kinetics is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Horizon Kinetics

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

The idea behind SentinelOne and Horizon Kinetics Medical 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.