Correlation Between SentinelOne and Ford
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Ford 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 Ford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Ford Motor, you can compare the effects of market volatilities on SentinelOne and Ford 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 Ford. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Ford.
Diversification Opportunities for SentinelOne and Ford
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Ford is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Ford Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of SentinelOne i.e., SentinelOne and Ford go up and down completely randomly.
Pair Corralation between SentinelOne and Ford
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.75 times more return on investment than Ford. However, SentinelOne is 1.75 times more volatile than Ford Motor. It trades about 0.02 of its potential returns per unit of risk. Ford Motor is currently generating about 0.02 per unit of risk. If you would invest 2,194 in SentinelOne on January 27, 2024 and sell it today you would lose (74.00) from holding SentinelOne or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Ford Motor
Performance |
| Timeline |
| SentinelOne |
| Ford Motor |
SentinelOne and Ford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Ford
The main advantage of trading using opposite SentinelOne and Ford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Ford 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 Ford will offset losses from the drop in Ford's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Cloudflare |
| Ford vs. Hycroft Mining Holding | Ford vs. Imperial Petroleum | Ford vs. Exela Technologies | Ford vs. Camber Energy |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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