Correlation Between SentinelOne and Trendline
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Trendline 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 Trendline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Trendline, you can compare the effects of market volatilities on SentinelOne and Trendline 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 Trendline. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Trendline.
Diversification Opportunities for SentinelOne and Trendline
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Trendline is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Trendline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trendline 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 Trendline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trendline has no effect on the direction of SentinelOne i.e., SentinelOne and Trendline go up and down completely randomly.
Pair Corralation between SentinelOne and Trendline
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.91 times more return on investment than Trendline. However, SentinelOne is 1.1 times less risky than Trendline. It trades about -0.21 of its potential returns per unit of risk. Trendline is currently generating about -0.24 per unit of risk. If you would invest 2,285 in SentinelOne on January 19, 2024 and sell it today you would lose (224.00) from holding SentinelOne or give up 9.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
SentinelOne vs. Trendline
Performance |
| Timeline |
| SentinelOne |
| Trendline |
SentinelOne and Trendline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Trendline
The main advantage of trading using opposite SentinelOne and Trendline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Trendline 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 Trendline will offset losses from the drop in Trendline's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Trendline vs. Rani Zim Shopping | Trendline vs. Accel Solutions Group | Trendline vs. Rapac Communication Infrastructure |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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