Correlation Between SentinelOne and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Lloyds Banking 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 Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Lloyds Banking Group, you can compare the effects of market volatilities on SentinelOne and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Lloyds Banking.
Diversification Opportunities for SentinelOne and Lloyds Banking
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Lloyds is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of SentinelOne i.e., SentinelOne and Lloyds Banking go up and down completely randomly.
Pair Corralation between SentinelOne and Lloyds Banking
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.12 times more return on investment than Lloyds Banking. However, SentinelOne is 1.12 times more volatile than Lloyds Banking Group. It trades about 0.11 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about -0.02 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Lloyds Banking Group
Performance |
| Timeline |
| SentinelOne |
| Lloyds Banking Group |
SentinelOne and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Lloyds Banking
The main advantage of trading using opposite SentinelOne and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Lloyds Banking vs. PT Bank Rakyat | Lloyds Banking vs. Barclays PLC | Lloyds Banking vs. Bank Mandiri Persero | Lloyds Banking vs. China Petroleum Chemical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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