Correlation Between SentinelOne and Farmers Bancorp
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Farmers Bancorp 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 Farmers Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Farmers Bancorp, you can compare the effects of market volatilities on SentinelOne and Farmers Bancorp 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 Farmers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Farmers Bancorp.
Diversification Opportunities for SentinelOne and Farmers Bancorp
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and Farmers is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Farmers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers Bancorp 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 Farmers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers Bancorp has no effect on the direction of SentinelOne i.e., SentinelOne and Farmers Bancorp go up and down completely randomly.
Pair Corralation between SentinelOne and Farmers Bancorp
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.32 times more return on investment than Farmers Bancorp. However, SentinelOne is 2.32 times more volatile than Farmers Bancorp. It trades about 0.15 of its potential returns per unit of risk. Farmers Bancorp is currently generating about 0.18 per unit of risk. If you would invest 2,392 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 416.00 from holding SentinelOne or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
SentinelOne vs. Farmers Bancorp
Performance |
| Timeline |
| SentinelOne |
| Farmers Bancorp |
SentinelOne and Farmers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Farmers Bancorp
The main advantage of trading using opposite SentinelOne and Farmers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Farmers Bancorp 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 Farmers Bancorp will offset losses from the drop in Farmers Bancorp's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Farmers Bancorp vs. First Farmers Financial | Farmers Bancorp vs. Farmers Merchants Bancorp | Farmers Bancorp vs. Lakeland Financial | Farmers Bancorp vs. Eagle Financial Services |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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