Correlation Between SentinelOne and Apple
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Apple Inc, you can compare the effects of market volatilities on SentinelOne and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Apple.
Diversification Opportunities for SentinelOne and Apple
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and Apple is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Apple go up and down completely randomly.
Pair Corralation between SentinelOne and Apple
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.14 times more return on investment than Apple. However, SentinelOne is 3.14 times more volatile than Apple Inc. It trades about 0.08 of its potential returns per unit of risk. Apple Inc is currently generating about 0.01 per unit of risk. If you would invest 1,687 in SentinelOne on December 29, 2023 and sell it today you would earn a total of 581.00 from holding SentinelOne or generate 34.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SentinelOne vs. Apple Inc
Performance |
Timeline |
SentinelOne |
Apple Inc |
SentinelOne and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and Apple
The main advantage of trading using opposite SentinelOne and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.SentinelOne vs. Global Blue Group | SentinelOne vs. Aurora Mobile | SentinelOne vs. Marqeta | SentinelOne vs. Nextnav Acquisition Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
CEOs Directory Screen CEOs from public companies around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |