Correlation Between SentinelOne and Security Bank
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Security 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 Security Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Security Bank Corp, you can compare the effects of market volatilities on SentinelOne and Security 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 Security Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Security Bank.
Diversification Opportunities for SentinelOne and Security Bank
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SentinelOne and Security is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Security Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Bank Corp 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 Security Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Bank Corp has no effect on the direction of SentinelOne i.e., SentinelOne and Security Bank go up and down completely randomly.
Pair Corralation between SentinelOne and Security Bank
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.96 times more return on investment than Security Bank. However, SentinelOne is 1.04 times less risky than Security Bank. It trades about 0.17 of its potential returns per unit of risk. Security Bank Corp is currently generating about -0.06 per unit of risk. If you would invest 2,579 in SentinelOne on September 1, 2024 and sell it today you would earn a total of 216.00 from holding SentinelOne or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Security Bank Corp
Performance |
| Timeline |
| SentinelOne |
| Security Bank Corp |
SentinelOne and Security Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Security Bank
The main advantage of trading using opposite SentinelOne and Security Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Security 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 Security Bank will offset losses from the drop in Security Bank's long position.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Security Bank vs. Metropolitan Bank Trust | Security Bank vs. Philippine National Bank | Security Bank vs. Asia United Bank | Security Bank vs. Philippine Savings Bank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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