Correlation Between Multi Manager and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Multi Manager and SentinelOne 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 Multi Manager and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager Invest and SentinelOne, you can compare the effects of market volatilities on Multi Manager and SentinelOne 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 Multi Manager with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and SentinelOne.
Diversification Opportunities for Multi Manager and SentinelOne
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and SentinelOne is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Invest and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Multi Manager 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 Multi Manager Invest are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Multi Manager i.e., Multi Manager and SentinelOne go up and down completely randomly.
Pair Corralation between Multi Manager and SentinelOne
Assuming the 90 days trading horizon Multi Manager Invest is expected to generate 0.27 times more return on investment than SentinelOne. However, Multi Manager Invest is 3.66 times less risky than SentinelOne. It trades about -0.15 of its potential returns per unit of risk. SentinelOne is currently generating about -0.32 per unit of risk. If you would invest 41,536 in Multi Manager Invest on January 20, 2024 and sell it today you would lose (716.00) from holding Multi Manager Invest or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Multi Manager Invest vs. SentinelOne
Performance |
| Timeline |
| Multi Manager Invest |
| SentinelOne |
Multi Manager and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and SentinelOne
The main advantage of trading using opposite Multi Manager and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.| Multi Manager vs. Novo Nordisk AS | Multi Manager vs. Nordea Bank Abp | Multi Manager vs. DSV Panalpina AS | Multi Manager vs. AP Mller |
| SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Cloudflare |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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