Correlation Between SentinelOne and Caixabank
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Caixabank 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 Caixabank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Caixabank SA, you can compare the effects of market volatilities on SentinelOne and Caixabank 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 Caixabank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Caixabank.
Diversification Opportunities for SentinelOne and Caixabank
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SentinelOne and Caixabank is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Caixabank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank SA 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 Caixabank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixabank SA has no effect on the direction of SentinelOne i.e., SentinelOne and Caixabank go up and down completely randomly.
Pair Corralation between SentinelOne and Caixabank
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.15 times less return on investment than Caixabank. In addition to that, SentinelOne is 1.12 times more volatile than Caixabank SA. It trades about 0.15 of its total potential returns per unit of risk. Caixabank SA is currently generating about 0.36 per unit of volatility. If you would invest 520.00 in Caixabank SA on November 4, 2024 and sell it today you would earn a total of 66.00 from holding Caixabank SA or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
SentinelOne vs. Caixabank SA
Performance |
| Timeline |
| SentinelOne |
| Caixabank SA |
SentinelOne and Caixabank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Caixabank
The main advantage of trading using opposite SentinelOne and Caixabank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Caixabank 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 Caixabank will offset losses from the drop in Caixabank's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Caixabank vs. Banco de Sabadell | Caixabank vs. Banco Santander | Caixabank vs. Bankinter | Caixabank vs. Repsol |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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