Correlation Between SentinelOne and First Trust
Can any of the company-specific risk be diversified away by investing in both SentinelOne and First Trust 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 First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and First Trust Preferred, you can compare the effects of market volatilities on SentinelOne and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and First Trust.
Diversification Opportunities for SentinelOne and First Trust
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and First is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First Trust Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Preferred 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Preferred has no effect on the direction of SentinelOne i.e., SentinelOne and First Trust go up and down completely randomly.
Pair Corralation between SentinelOne and First Trust
Taking into account the 90-day investment horizon SentinelOne is expected to generate 14.16 times more return on investment than First Trust. However, SentinelOne is 14.16 times more volatile than First Trust Preferred. It trades about 0.02 of its potential returns per unit of risk. First Trust Preferred is currently generating about 0.16 per unit of risk. If you would invest 1,667 in SentinelOne on April 20, 2025 and sell it today you would earn a total of 134.00 from holding SentinelOne or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SentinelOne vs. First Trust Preferred
Performance |
| Timeline |
| SentinelOne |
| First Trust Preferred |
SentinelOne and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and First Trust
The main advantage of trading using opposite SentinelOne and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| SentinelOne vs. Palantir Technologies Class | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Oracle | SentinelOne vs. CoreWeave, Class A |
| First Trust vs. Franklin Templeton Multi Asset | First Trust vs. First Trust Multi Strategy | First Trust vs. First Trust Short | First Trust vs. First Trust Short |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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