Correlation Between SentinelOne and Shaniv

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Can any of the company-specific risk be diversified away by investing in both SentinelOne and Shaniv 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 Shaniv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Shaniv, you can compare the effects of market volatilities on SentinelOne and Shaniv 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 Shaniv. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Shaniv.

Diversification Opportunities for SentinelOne and Shaniv

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between SentinelOne and Shaniv is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Shaniv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaniv 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 Shaniv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaniv has no effect on the direction of SentinelOne i.e., SentinelOne and Shaniv go up and down completely randomly.

Pair Corralation between SentinelOne and Shaniv

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Shaniv. In addition to that, SentinelOne is 2.97 times more volatile than Shaniv. It trades about -0.17 of its total potential returns per unit of risk. Shaniv is currently generating about 0.18 per unit of volatility. If you would invest  37,080  in Shaniv on December 30, 2023 and sell it today you would earn a total of  1,820  from holding Shaniv or generate 4.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy81.82%
ValuesDaily Returns

SentinelOne  vs.  Shaniv

 Performance 
       Timeline  
SentinelOne 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
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 comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Shaniv 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Shaniv are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shaniv sustained solid returns over the last few months and may actually be approaching a breakup point.

SentinelOne and Shaniv Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SentinelOne and Shaniv

The main advantage of trading using opposite SentinelOne and Shaniv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Shaniv 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 Shaniv will offset losses from the drop in Shaniv's long position.
The idea behind SentinelOne and Shaniv 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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