Correlation Between SentinelOne and Faysal Bank
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Faysal 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 Faysal Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Faysal Bank, you can compare the effects of market volatilities on SentinelOne and Faysal 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 Faysal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Faysal Bank.
Diversification Opportunities for SentinelOne and Faysal Bank
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SentinelOne and Faysal is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Faysal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faysal Bank 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 Faysal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faysal Bank has no effect on the direction of SentinelOne i.e., SentinelOne and Faysal Bank go up and down completely randomly.
Pair Corralation between SentinelOne and Faysal Bank
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.7 times less return on investment than Faysal Bank. In addition to that, SentinelOne is 1.32 times more volatile than Faysal Bank. It trades about 0.07 of its total potential returns per unit of risk. Faysal Bank is currently generating about 0.15 per unit of volatility. If you would invest 2,331 in Faysal Bank on August 25, 2024 and sell it today you would earn a total of 2,882 from holding Faysal Bank or generate 123.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.8% |
| Values | Daily Returns |
SentinelOne vs. Faysal Bank
Performance |
| Timeline |
| SentinelOne |
| Faysal Bank |
SentinelOne and Faysal Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Faysal Bank
The main advantage of trading using opposite SentinelOne and Faysal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Faysal 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 Faysal Bank will offset losses from the drop in Faysal Bank's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Faysal Bank vs. Masood Textile Mills | Faysal Bank vs. Fauji Foods | Faysal Bank vs. KSB Pumps | Faysal Bank vs. Mari Petroleum |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |