Correlation Between Intel and SentinelOne

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

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

Diversification Opportunities for Intel and SentinelOne

0.54

Correlation Coefficient

Intel  SentinelOne

Very weak diversification

The 3 months correlation between Intel and SentinelOne is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intel and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Intel 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 Intel 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 Intel i.e., Intel and SentinelOne go up and down completely randomly.

Pair Corralation between Intel and SentinelOne

Given the investment horizon of 90 days Intel is expected to under-perform the SentinelOne. In addition to that, Intel is 1.26 times more volatile than SentinelOne. It trades about -0.33 of its total potential returns per unit of risk. SentinelOne is currently generating about -0.27 per unit of volatility. If you would invest  2,331  in SentinelOne on January 20, 2024 and sell it today you would lose (270.00) from holding SentinelOne or give up 11.58% of portfolio value over 90 days.

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

Intel  vs.  SentinelOne

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SentinelOne

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Intel and SentinelOne

The main advantage of trading using opposite Intel and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.

The idea behind Intel and SentinelOne 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.