Correlation Between SentinelOne and First State
Can any of the company-specific risk be diversified away by investing in both SentinelOne and First State 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 State into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and First State Financial, you can compare the effects of market volatilities on SentinelOne and First State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and First State.
Diversification Opportunities for SentinelOne and First State
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and First is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First State Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First State 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First State Financial has no effect on the direction of SentinelOne i.e., SentinelOne and First State go up and down completely randomly.
Pair Corralation between SentinelOne and First State
Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the First State. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 12.95 times less risky than First State. The stock trades about -0.04 of its potential returns per unit of risk. The First State Financial is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2.00 in First State Financial on September 26, 2025 and sell it today you would lose (0.18) from holding First State Financial or give up 9.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
SentinelOne vs. First State Financial
Performance |
| Timeline |
| SentinelOne |
| First State Financial |
SentinelOne and First State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and First State
The main advantage of trading using opposite SentinelOne and First State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, First State 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 State will offset losses from the drop in First State's long position.| SentinelOne vs. Apple Inc | SentinelOne vs. Alphabet Inc Class A | SentinelOne vs. NVIDIA | SentinelOne vs. Oracle |
| First State vs. Previsto International Holdings | First State vs. Global Quest | First State vs. Sortis Holdings | First State vs. Vector 21 Holdings |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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