Correlation Between SentinelOne and First Bankers
Can any of the company-specific risk be diversified away by investing in both SentinelOne and First Bankers 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 First Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and First Bankers Trustshares, you can compare the effects of market volatilities on SentinelOne and First Bankers 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 First Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and First Bankers.
Diversification Opportunities for SentinelOne and First Bankers
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and First is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First Bankers Trustshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bankers Trustshares 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 First Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bankers Trustshares has no effect on the direction of SentinelOne i.e., SentinelOne and First Bankers go up and down completely randomly.
Pair Corralation between SentinelOne and First Bankers
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.34 times more return on investment than First Bankers. However, SentinelOne is 1.34 times more volatile than First Bankers Trustshares. It trades about 0.05 of its potential returns per unit of risk. First Bankers Trustshares is currently generating about -0.01 per unit of risk. If you would invest 1,524 in SentinelOne on August 29, 2024 and sell it today you would earn a total of 1,269 from holding SentinelOne or generate 83.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.01% |
| Values | Daily Returns |
SentinelOne vs. First Bankers Trustshares
Performance |
| Timeline |
| SentinelOne |
| First Bankers Trustshares |
SentinelOne and First Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and First Bankers
The main advantage of trading using opposite SentinelOne and First Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, First Bankers 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 First Bankers will offset losses from the drop in First Bankers' long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Paysafe |
| First Bankers vs. Greenville Federal Financial | First Bankers vs. First Ottawa Bancshares | First Bankers vs. Coastal Carolina Bancshares | First Bankers vs. Citizens Bancorp Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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