Correlation Between SentinelOne and NetApp
Can any of the company-specific risk be diversified away by investing in both SentinelOne and NetApp 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 NetApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and NetApp Inc, you can compare the effects of market volatilities on SentinelOne and NetApp 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 NetApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and NetApp.
Diversification Opportunities for SentinelOne and NetApp
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and NetApp is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and NetApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetApp Inc 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 NetApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetApp Inc has no effect on the direction of SentinelOne i.e., SentinelOne and NetApp go up and down completely randomly.
Pair Corralation between SentinelOne and NetApp
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the NetApp. In addition to that, SentinelOne is 2.26 times more volatile than NetApp Inc. It trades about 0.0 of its total potential returns per unit of risk. NetApp Inc is currently generating about 0.05 per unit of volatility. If you would invest 7,097 in NetApp Inc on January 18, 2024 and sell it today you would earn a total of 2,994 from holding NetApp Inc or generate 42.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SentinelOne vs. NetApp Inc
Performance |
Timeline |
SentinelOne |
NetApp Inc |
SentinelOne and NetApp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and NetApp
The main advantage of trading using opposite SentinelOne and NetApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, NetApp 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 NetApp will offset losses from the drop in NetApp's long position.SentinelOne vs. Cloudflare | SentinelOne vs. Okta Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Nutanix |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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