Correlation Between SFL and SentinelOne
Can any of the company-specific risk be diversified away by investing in both SFL 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 SFL and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFL Corporation and SentinelOne, you can compare the effects of market volatilities on SFL 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 SFL with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and SentinelOne.
Diversification Opportunities for SFL and SentinelOne
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SFL and SentinelOne is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and SFL 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 SFL Corporation 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 SFL i.e., SFL and SentinelOne go up and down completely randomly.
Pair Corralation between SFL and SentinelOne
Considering the 90-day investment horizon SFL Corporation is expected to generate 0.22 times more return on investment than SentinelOne. However, SFL Corporation is 4.49 times less risky than SentinelOne. It trades about 0.02 of its potential returns per unit of risk. SentinelOne is currently generating about -0.17 per unit of risk. If you would invest 1,315 in SFL Corporation on December 30, 2023 and sell it today you would earn a total of 3.00 from holding SFL Corporation or generate 0.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SFL Corp. vs. SentinelOne
Performance |
Timeline |
SFL Corporation |
SentinelOne |
SFL and SentinelOne Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SFL and SentinelOne
The main advantage of trading using opposite SFL and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL 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.The idea behind SFL Corporation and SentinelOne 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.SentinelOne vs. Aurora Mobile | SentinelOne vs. Marqeta | SentinelOne vs. Nextnav Acquisition Corp | SentinelOne vs. Zscaler |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |