Correlation Between SentinelOne and First National
Can any of the company-specific risk be diversified away by investing in both SentinelOne and First National 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 National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and First National Financial, you can compare the effects of market volatilities on SentinelOne and First National 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 National. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and First National.
Diversification Opportunities for SentinelOne and First National
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SentinelOne and First is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Financial 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 National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Financial has no effect on the direction of SentinelOne i.e., SentinelOne and First National go up and down completely randomly.
Pair Corralation between SentinelOne and First National
Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.98 times more return on investment than First National. However, SentinelOne is 3.98 times more volatile than First National Financial. It trades about 0.05 of its potential returns per unit of risk. First National Financial is currently generating about 0.07 per unit of risk. If you would invest 1,537 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 1,271 from holding SentinelOne or generate 82.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SentinelOne vs. First National Financial
Performance |
| Timeline |
| SentinelOne |
| First National Financial |
SentinelOne and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and First National
The main advantage of trading using opposite SentinelOne and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, First National 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 National will offset losses from the drop in First National's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| First National vs. Walmart Inc CDR | First National vs. Amazon CDR | First National vs. Berkshire Hathaway CDR | First National vs. UnitedHealth Group CDR |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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