Correlation Between Oracle and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Oracle 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 Oracle and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and SentinelOne, you can compare the effects of market volatilities on Oracle 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 Oracle with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and SentinelOne.
Diversification Opportunities for Oracle and SentinelOne
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oracle and SentinelOne is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Oracle 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 Oracle 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 Oracle i.e., Oracle and SentinelOne go up and down completely randomly.
Pair Corralation between Oracle and SentinelOne
Given the investment horizon of 90 days Oracle is expected to generate 1.11 times more return on investment than SentinelOne. However, Oracle is 1.11 times more volatile than SentinelOne. It trades about 0.4 of its potential returns per unit of risk. SentinelOne is currently generating about 0.04 per unit of risk. If you would invest 13,112 in Oracle on April 23, 2025 and sell it today you would earn a total of 11,242 from holding Oracle or generate 85.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. SentinelOne
Performance |
| Timeline |
| Oracle |
| SentinelOne |
Oracle and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and SentinelOne
The main advantage of trading using opposite Oracle and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle 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.| Oracle vs. Adobe Systems Incorporated | Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft |
| SentinelOne vs. Palantir Technologies Class | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Oracle | SentinelOne vs. CoreWeave, Class A |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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