Correlation Between First Trust and SentinelOne
Can any of the company-specific risk be diversified away by investing in both First Trust 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 First Trust and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust and SentinelOne, you can compare the effects of market volatilities on First Trust 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 First Trust with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and SentinelOne.
Diversification Opportunities for First Trust and SentinelOne
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and SentinelOne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Trust and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and First Trust 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 First Trust 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 First Trust i.e., First Trust and SentinelOne go up and down completely randomly.
Pair Corralation between First Trust and SentinelOne
If you would invest (100.00) in First Trust on January 26, 2024 and sell it today you would earn a total of 100.00 from holding First Trust or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
First Trust vs. SentinelOne
Performance |
Timeline |
First Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SentinelOne |
First Trust and SentinelOne Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Trust and SentinelOne
The main advantage of trading using opposite First Trust and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust 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.First Trust vs. First Trust Exchange Traded | First Trust vs. First Trust Exchange Traded | First Trust vs. First Trust Dorsey | First Trust vs. First Trust Multi Asset |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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