Correlation Between IMedia Brands and SentinelOne
Can any of the company-specific risk be diversified away by investing in both IMedia Brands 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 IMedia Brands and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMedia Brands and SentinelOne, you can compare the effects of market volatilities on IMedia Brands 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 IMedia Brands with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMedia Brands and SentinelOne.
Diversification Opportunities for IMedia Brands and SentinelOne
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IMedia and SentinelOne is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding IMedia Brands and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and IMedia Brands 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 IMedia Brands 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 IMedia Brands i.e., IMedia Brands and SentinelOne go up and down completely randomly.
Pair Corralation between IMedia Brands and SentinelOne
Given the investment horizon of 90 days IMedia Brands is expected to under-perform the SentinelOne. In addition to that, IMedia Brands is 2.88 times more volatile than SentinelOne. It trades about -0.09 of its total potential returns per unit of risk. SentinelOne is currently generating about 0.0 per unit of volatility. If you would invest 3,379 in SentinelOne on January 20, 2024 and sell it today you would lose (1,318) from holding SentinelOne or give up 39.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 69.23% |
| Values | Daily Returns |
IMedia Brands vs. SentinelOne
Performance |
| Timeline |
| IMedia Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SentinelOne |
IMedia Brands and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMedia Brands and SentinelOne
The main advantage of trading using opposite IMedia Brands and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMedia Brands 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.| IMedia Brands vs. Janone Inc | IMedia Brands vs. Xcel Brands | IMedia Brands vs. FlexShopper | IMedia Brands vs. Monopar Therapeutics |
| SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Cloudflare |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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