Correlation Between SentinelOne and Standard Bank
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Standard Bank 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 Standard Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Standard Bank Group, you can compare the effects of market volatilities on SentinelOne and Standard Bank 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 Standard Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Standard Bank.
Diversification Opportunities for SentinelOne and Standard Bank
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SentinelOne and Standard is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Standard Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Bank 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 Standard Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Bank Group has no effect on the direction of SentinelOne i.e., SentinelOne and Standard Bank go up and down completely randomly.
Pair Corralation between SentinelOne and Standard Bank
Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.03 times more return on investment than Standard Bank. However, SentinelOne is 2.03 times more volatile than Standard Bank Group. It trades about 0.06 of its potential returns per unit of risk. Standard Bank Group is currently generating about 0.09 per unit of risk. If you would invest 1,722 in SentinelOne on November 28, 2024 and sell it today you would earn a total of 466.00 from holding SentinelOne or generate 27.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.92% |
| Values | Daily Returns |
SentinelOne vs. Standard Bank Group
Performance |
| Timeline |
| SentinelOne |
| Standard Bank Group |
SentinelOne and Standard Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Standard Bank
The main advantage of trading using opposite SentinelOne and Standard Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Standard Bank 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 Standard Bank will offset losses from the drop in Standard Bank's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Standard Bank vs. Standard Bank Group | Standard Bank vs. Blue Label Telecoms | Standard Bank vs. African Media Entertainment | Standard Bank vs. RCL Foods |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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