Correlation Between SentinelOne and Ellsworth Fund

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Ellsworth Fund 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 Ellsworth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and Ellsworth Fund, you can compare the effects of market volatilities on SentinelOne and Ellsworth Fund 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 Ellsworth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Ellsworth Fund.

Diversification Opportunities for SentinelOne and Ellsworth Fund

-0.15

Correlation Coefficient

SentinelOne  Ellsworth Fund

Good diversification

The 3 months correlation between SentinelOne and Ellsworth is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Ellsworth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Fund 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 Ellsworth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Fund has no effect on the direction of SentinelOne i.e., SentinelOne and Ellsworth Fund go up and down completely randomly.

Pair Corralation between SentinelOne and Ellsworth Fund

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Ellsworth Fund. In addition to that, SentinelOne is 3.99 times more volatile than Ellsworth Fund. It trades about 0.0 of its total potential returns per unit of risk. Ellsworth Fund is currently generating about 0.3 per unit of volatility. If you would invest  1,060  in Ellsworth Fund on May 3, 2025 and sell it today you would earn a total of  141.00  from holding Ellsworth Fund or generate 13.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Ellsworth Fund

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Ellsworth Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ellsworth Fund are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Ellsworth Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Ellsworth Fund

The main advantage of trading using opposite SentinelOne and Ellsworth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Ellsworth Fund 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 Ellsworth Fund will offset losses from the drop in Ellsworth Fund's long position.

The idea behind SentinelOne and Ellsworth Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.