Correlation Between SentinelOne and Bank First
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Bank First 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 Bank First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Bank First National, you can compare the effects of market volatilities on SentinelOne and Bank First 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 Bank First. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Bank First.
Diversification Opportunities for SentinelOne and Bank First
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Bank is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Bank First National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank First National 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 Bank First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank First National has no effect on the direction of SentinelOne i.e., SentinelOne and Bank First go up and down completely randomly.
Pair Corralation between SentinelOne and Bank First
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.44 times less return on investment than Bank First. But when comparing it to its historical volatility, SentinelOne is 1.47 times less risky than Bank First. It trades about 0.19 of its potential returns per unit of risk. Bank First National is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 9,173 in Bank First National on August 25, 2024 and sell it today you would earn a total of 1,288 from holding Bank First National or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Bank First National
Performance |
| Timeline |
| SentinelOne |
| Bank First National |
SentinelOne and Bank First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Bank First
The main advantage of trading using opposite SentinelOne and Bank First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Bank First 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 Bank First will offset losses from the drop in Bank First's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Bank First vs. Norwood Financial Corp | Bank First vs. Chemung Financial Corp | Bank First vs. Home Federal Bancorp | Bank First vs. Rhinebeck Bancorp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |