Correlation Between SentinelOne and Citigroup
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Citigroup 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 Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Citigroup, you can compare the effects of market volatilities on SentinelOne and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Citigroup.
Diversification Opportunities for SentinelOne and Citigroup
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Citigroup is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of SentinelOne i.e., SentinelOne and Citigroup go up and down completely randomly.
Pair Corralation between SentinelOne and Citigroup
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Citigroup. In addition to that, SentinelOne is 1.41 times more volatile than Citigroup. It trades about -0.21 of its total potential returns per unit of risk. Citigroup is currently generating about -0.01 per unit of volatility. If you would invest 5,886 in Citigroup on January 19, 2024 and sell it today you would lose (30.00) from holding Citigroup or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Citigroup
Performance |
| Timeline |
| SentinelOne |
| Citigroup |
SentinelOne and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Citigroup
The main advantage of trading using opposite SentinelOne and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |