Correlation Between Sentinel International and PHD
Can any of the company-specific risk be diversified away by investing in both Sentinel International and PHD 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 Sentinel International and PHD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentinel International Equity and PHD, you can compare the effects of market volatilities on Sentinel International and PHD 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 Sentinel International with a short position of PHD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentinel International and PHD.
Diversification Opportunities for Sentinel International and PHD
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sentinel and PHD is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sentinel International Equity and PHD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHD and Sentinel International 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 Sentinel International Equity are associated (or correlated) with PHD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHD has no effect on the direction of Sentinel International i.e., Sentinel International and PHD go up and down completely randomly.
Pair Corralation between Sentinel International and PHD
Assuming the 90 days horizon Sentinel International Equity is expected to generate 0.04 times more return on investment than PHD. However, Sentinel International Equity is 24.25 times less risky than PHD. It trades about 0.14 of its potential returns per unit of risk. PHD is currently generating about -0.16 per unit of risk. If you would invest 1,700 in Sentinel International Equity on August 27, 2025 and sell it today you would earn a total of 104.00 from holding Sentinel International Equity or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 57.14% |
| Values | Daily Returns |
Sentinel International Equity vs. PHD
Performance |
| Timeline |
| Sentinel International |
| PHD |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Sentinel International and PHD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentinel International and PHD
The main advantage of trading using opposite Sentinel International and PHD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentinel International position performs unexpectedly, PHD 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 PHD will offset losses from the drop in PHD's long position.| Sentinel International vs. Rational Dividend Capture | Sentinel International vs. Aqr Sustainable Long Short | Sentinel International vs. Rbb Fund | Sentinel International vs. T Rowe Price |
| PHD vs. FT Vest Equity | PHD vs. Zillow Group Class | PHD vs. Northern Lights | PHD vs. VanEck Vectors Moodys |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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