Correlation Between SentinelOne and ConAgra Foods
Can any of the company-specific risk be diversified away by investing in both SentinelOne and ConAgra Foods 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 ConAgra Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and ConAgra Foods, you can compare the effects of market volatilities on SentinelOne and ConAgra Foods 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 ConAgra Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and ConAgra Foods.
Diversification Opportunities for SentinelOne and ConAgra Foods
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and ConAgra is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ConAgra Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConAgra Foods 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 ConAgra Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConAgra Foods has no effect on the direction of SentinelOne i.e., SentinelOne and ConAgra Foods go up and down completely randomly.
Pair Corralation between SentinelOne and ConAgra Foods
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the ConAgra Foods. In addition to that, SentinelOne is 2.52 times more volatile than ConAgra Foods. It trades about -0.1 of its total potential returns per unit of risk. ConAgra Foods is currently generating about 0.1 per unit of volatility. If you would invest 2,824 in ConAgra Foods on February 4, 2024 and sell it today you would earn a total of 235.00 from holding ConAgra Foods or generate 8.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SentinelOne vs. ConAgra Foods
Performance |
Timeline |
SentinelOne |
ConAgra Foods |
SentinelOne and ConAgra Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and ConAgra Foods
The main advantage of trading using opposite SentinelOne and ConAgra Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, ConAgra Foods 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 ConAgra Foods will offset losses from the drop in ConAgra Foods' long position.SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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