Correlation Between SentinelOne and JPMorgan Chase

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

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

Diversification Opportunities for SentinelOne and JPMorgan Chase

-0.62

Correlation Coefficient

SentinelOne  JPMorgan Chase

Excellent diversification

The 3 months correlation between SentinelOne and JPMorgan is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase 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 JPMorgan Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Chase has no effect on the direction of SentinelOne i.e., SentinelOne and JPMorgan Chase go up and down completely randomly.

Pair Corralation between SentinelOne and JPMorgan Chase

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the JPMorgan Chase. In addition to that, SentinelOne is 2.96 times more volatile than JPMorgan Chase Co. It trades about -0.07 of its total potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.16 per unit of volatility. If you would invest  17,128  in JPMorgan Chase Co on January 26, 2024 and sell it today you would earn a total of  2,180  from holding JPMorgan Chase Co or generate 12.73% return on investment over 90 days.

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

SentinelOne  vs.  JPMorgan Chase Co

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 unsteady 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.

JPMorgan Chase

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and JPMorgan Chase

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

The idea behind SentinelOne and JPMorgan Chase Co 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..