Correlation Between SentinelOne and Selected American
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Selected American 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 Selected American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Selected American Shares, you can compare the effects of market volatilities on SentinelOne and Selected American 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 Selected American. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Selected American.
Diversification Opportunities for SentinelOne and Selected American
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Selected is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Selected American Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected American Shares 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 Selected American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected American Shares has no effect on the direction of SentinelOne i.e., SentinelOne and Selected American go up and down completely randomly.
Pair Corralation between SentinelOne and Selected American
Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.47 times less return on investment than Selected American. In addition to that, SentinelOne is 2.27 times more volatile than Selected American Shares. It trades about 0.01 of its total potential returns per unit of risk. Selected American Shares is currently generating about 0.18 per unit of volatility. If you would invest 3,698 in Selected American Shares on April 16, 2025 and sell it today you would earn a total of 98.00 from holding Selected American Shares or generate 2.65% 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. Selected American Shares
Performance |
| Timeline |
| SentinelOne |
| Selected American Shares |
SentinelOne and Selected American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Selected American
The main advantage of trading using opposite SentinelOne and Selected American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Selected American 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 Selected American will offset losses from the drop in Selected American's long position.| SentinelOne vs. Palantir Technologies Class | SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Oracle | SentinelOne vs. CoreWeave, Class A |
| Selected American vs. Marsico Focus Fund | Selected American vs. Artisan International Fund | Selected American vs. Third Avenue Value | Selected American vs. Oakmark Select Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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