Correlation Between SentinelOne and Finward Bancorp
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Finward 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 Finward Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Finward Bancorp, you can compare the effects of market volatilities on SentinelOne and Finward 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 Finward Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Finward Bancorp.
Diversification Opportunities for SentinelOne and Finward Bancorp
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Finward is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Finward Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finward 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 Finward Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finward Bancorp has no effect on the direction of SentinelOne i.e., SentinelOne and Finward Bancorp go up and down completely randomly.
Pair Corralation between SentinelOne and Finward Bancorp
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.95 times less return on investment than Finward Bancorp. In addition to that, SentinelOne is 2.31 times more volatile than Finward Bancorp. It trades about 0.02 of its total potential returns per unit of risk. Finward Bancorp is currently generating about 0.12 per unit of volatility. If you would invest 2,299 in Finward Bancorp on August 27, 2024 and sell it today you would earn a total of 776.00 from holding Finward Bancorp or generate 33.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Finward Bancorp
Performance |
| Timeline |
| SentinelOne |
| Finward Bancorp |
SentinelOne and Finward Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Finward Bancorp
The main advantage of trading using opposite SentinelOne and Finward Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Finward 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 Finward Bancorp will offset losses from the drop in Finward Bancorp's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| Finward Bancorp vs. Community West Bancshares | Finward Bancorp vs. First Financial Northwest | Finward Bancorp vs. Oak Valley Bancorp | Finward Bancorp vs. Home Federal Bancorp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |