Correlation Between Cohen Steers and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Cohen Steers 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 Cohen Steers and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Infrastructure and SentinelOne, you can compare the effects of market volatilities on Cohen Steers 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 Cohen Steers with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and SentinelOne.
Diversification Opportunities for Cohen Steers and SentinelOne
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cohen and SentinelOne is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Infrastructure and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Cohen Steers 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 Cohen Steers Infrastructure 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 Cohen Steers i.e., Cohen Steers and SentinelOne go up and down completely randomly.
Pair Corralation between Cohen Steers and SentinelOne
Assuming the 90 days horizon Cohen Steers Infrastructure is expected to generate 0.17 times more return on investment than SentinelOne. However, Cohen Steers Infrastructure is 5.79 times less risky than SentinelOne. It trades about 0.13 of its potential returns per unit of risk. SentinelOne is currently generating about -0.21 per unit of risk. If you would invest 2,195 in Cohen Steers Infrastructure on December 29, 2023 and sell it today you would earn a total of 49.00 from holding Cohen Steers Infrastructure or generate 2.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Cohen Steers Infrastructure vs. SentinelOne
Performance |
Timeline |
Cohen Steers Infrast |
SentinelOne |
Cohen Steers and SentinelOne Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen Steers and SentinelOne
The main advantage of trading using opposite Cohen Steers and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers 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.Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard 500 Index | Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard Total Stock |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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