Correlation Between SentinelOne and Shift4 Payments
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Shift4 Payments 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 Shift4 Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Shift4 Payments, you can compare the effects of market volatilities on SentinelOne and Shift4 Payments 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 Shift4 Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Shift4 Payments.
Diversification Opportunities for SentinelOne and Shift4 Payments
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and Shift4 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Shift4 Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shift4 Payments 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 Shift4 Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shift4 Payments has no effect on the direction of SentinelOne i.e., SentinelOne and Shift4 Payments go up and down completely randomly.
Pair Corralation between SentinelOne and Shift4 Payments
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Shift4 Payments. In addition to that, SentinelOne is 1.69 times more volatile than Shift4 Payments. It trades about -0.2 of its total potential returns per unit of risk. Shift4 Payments is currently generating about 0.18 per unit of volatility. If you would invest 9,098 in Shift4 Payments on March 27, 2025 and sell it today you would earn a total of 616.00 from holding Shift4 Payments or generate 6.77% 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. Shift4 Payments
Performance |
| Timeline |
| SentinelOne |
| Shift4 Payments |
SentinelOne and Shift4 Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Shift4 Payments
The main advantage of trading using opposite SentinelOne and Shift4 Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Shift4 Payments 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 Shift4 Payments will offset losses from the drop in Shift4 Payments' long position.| SentinelOne vs. Uipath Inc | SentinelOne vs. Adobe Systems Incorporated | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Palantir Technologies Class |
| Shift4 Payments vs. SentinelOne | Shift4 Payments vs. Confluent | Shift4 Payments vs. MongoDB | Shift4 Payments vs. EverCommerce |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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