Correlation Between SentinelOne and Apple
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Apple Inc, you can compare the effects of market volatilities on SentinelOne and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Apple.
Diversification Opportunities for SentinelOne and Apple
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Apple is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Apple go up and down completely randomly.
Pair Corralation between SentinelOne and Apple
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Apple. In addition to that, SentinelOne is 1.26 times more volatile than Apple Inc. It trades about -0.25 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.01 per unit of volatility. If you would invest 17,372 in Apple Inc on January 17, 2024 and sell it today you would lose (103.00) from holding Apple Inc or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Apple Inc
Performance |
| Timeline |
| SentinelOne |
| Apple Inc |
SentinelOne and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Apple
The main advantage of trading using opposite SentinelOne and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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