Correlation Between SentinelOne and Avanza Bank
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Avanza Bank 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 Avanza Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Avanza Bank Holding, you can compare the effects of market volatilities on SentinelOne and Avanza Bank 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 Avanza Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Avanza Bank.
Diversification Opportunities for SentinelOne and Avanza Bank
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Avanza is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Avanza Bank Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avanza Bank Holding 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 Avanza Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avanza Bank Holding has no effect on the direction of SentinelOne i.e., SentinelOne and Avanza Bank go up and down completely randomly.
Pair Corralation between SentinelOne and Avanza Bank
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.8 times more return on investment than Avanza Bank. However, SentinelOne is 1.8 times more volatile than Avanza Bank Holding. It trades about 0.08 of its potential returns per unit of risk. Avanza Bank Holding is currently generating about 0.01 per unit of risk. If you would invest 1,277 in SentinelOne on August 27, 2024 and sell it today you would earn a total of 1,577 from holding SentinelOne or generate 123.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
SentinelOne vs. Avanza Bank Holding
Performance |
| Timeline |
| SentinelOne |
| Avanza Bank Holding |
SentinelOne and Avanza Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Avanza Bank
The main advantage of trading using opposite SentinelOne and Avanza Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Avanza Bank 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 Avanza Bank will offset losses from the drop in Avanza Bank's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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