Correlation Between SentinelOne and SL Green
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SL Green 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 SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SL Green Realty, you can compare the effects of market volatilities on SentinelOne and SL Green 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 SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SL Green.
Diversification Opportunities for SentinelOne and SL Green
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SentinelOne and SLG is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SL Green Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SL Green Realty 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 SL Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SL Green Realty has no effect on the direction of SentinelOne i.e., SentinelOne and SL Green go up and down completely randomly.
Pair Corralation between SentinelOne and SL Green
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the SL Green. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.43 times less risky than SL Green. The stock trades about -0.12 of its potential returns per unit of risk. The SL Green Realty is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,147 in SL Green Realty on February 5, 2024 and sell it today you would earn a total of 0.00 from holding SL Green Realty or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SentinelOne vs. SL Green Realty
Performance |
Timeline |
SentinelOne |
SL Green Realty |
SentinelOne and SL Green Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SentinelOne and SL Green
The main advantage of trading using opposite SentinelOne and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SL Green 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 SL Green will offset losses from the drop in SL Green's long position.The idea behind SentinelOne and SL Green Realty 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.SL Green vs. Hudson Pacific Properties | SL Green vs. Piedmont Office Realty | SL Green vs. Office Properties Income | SL Green vs. Hudson Pacific Properties |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |