Correlation Between SentinelOne and SouthState
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SouthState 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 SouthState into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SouthState, you can compare the effects of market volatilities on SentinelOne and SouthState 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 SouthState. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SouthState.
Diversification Opportunities for SentinelOne and SouthState
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SentinelOne and SouthState is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SouthState in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SouthState 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 SouthState. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SouthState has no effect on the direction of SentinelOne i.e., SentinelOne and SouthState go up and down completely randomly.
Pair Corralation between SentinelOne and SouthState
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.17 times less return on investment than SouthState. But when comparing it to its historical volatility, SentinelOne is 1.37 times less risky than SouthState. It trades about 0.19 of its potential returns per unit of risk. SouthState is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 9,757 in SouthState on August 25, 2024 and sell it today you would earn a total of 1,143 from holding SouthState or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SentinelOne vs. SouthState
Performance |
| Timeline |
| SentinelOne |
| SouthState |
SentinelOne and SouthState Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and SouthState
The main advantage of trading using opposite SentinelOne and SouthState positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SouthState 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 SouthState will offset losses from the drop in SouthState's long position.| SentinelOne vs. GigaCloud Technology Class | SentinelOne vs. Arqit Quantum | SentinelOne vs. Cemtrex | SentinelOne vs. Rapid7 Inc |
| SouthState vs. Fifth Third Bancorp | SouthState vs. Zions Bancorporation | SouthState vs. Huntington Bancshares Incorporated | SouthState vs. PNC Financial Services |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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