Correlation Between SentinelOne and Dollar General
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Dollar General 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 Dollar General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Dollar General, you can compare the effects of market volatilities on SentinelOne and Dollar General 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 Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Dollar General.
Diversification Opportunities for SentinelOne and Dollar General
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Dollar is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of SentinelOne i.e., SentinelOne and Dollar General go up and down completely randomly.
Pair Corralation between SentinelOne and Dollar General
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Dollar General. In addition to that, SentinelOne is 2.01 times more volatile than Dollar General. It trades about -0.07 of its total potential returns per unit of risk. Dollar General is currently generating about 0.07 per unit of volatility. If you would invest 13,296 in Dollar General on January 26, 2024 and sell it today you would earn a total of 1,020 from holding Dollar General or generate 7.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SentinelOne vs. Dollar General
Performance |
Timeline |
SentinelOne |
Dollar General |
SentinelOne and Dollar General Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and Dollar General
The main advantage of trading using opposite SentinelOne and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Cloudflare |
Dollar General vs. Ingles Markets Incorporated | Dollar General vs. Natural Grocers by | Dollar General vs. Tesco PLC | Dollar General vs. Casino Guichard Perrachon |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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