Correlation Between SentinelOne and Bancroft Fund
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Bancroft Fund 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 Bancroft Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Bancroft Fund Limited, you can compare the effects of market volatilities on SentinelOne and Bancroft Fund 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 Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Bancroft Fund.
Diversification Opportunities for SentinelOne and Bancroft Fund
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and Bancroft is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Bancroft Fund Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancroft Fund Limited 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 Bancroft Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancroft Fund Limited has no effect on the direction of SentinelOne i.e., SentinelOne and Bancroft Fund go up and down completely randomly.
Pair Corralation between SentinelOne and Bancroft Fund
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.47 times more return on investment than Bancroft Fund. However, SentinelOne is 3.47 times more volatile than Bancroft Fund Limited. It trades about 0.1 of its potential returns per unit of risk. Bancroft Fund Limited is currently generating about 0.26 per unit of risk. If you would invest 2,489 in SentinelOne on August 25, 2024 and sell it today you would earn a total of 365.00 from holding SentinelOne or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
SentinelOne vs. Bancroft Fund Limited
Performance |
| Timeline |
| SentinelOne |
| Bancroft Fund Limited |
SentinelOne and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Bancroft Fund
The main advantage of trading using opposite SentinelOne and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Bancroft Fund 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 Bancroft Fund will offset losses from the drop in Bancroft Fund's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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