Correlation Between SentinelOne and Swedbank
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Swedbank 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 Swedbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Swedbank AB, you can compare the effects of market volatilities on SentinelOne and Swedbank 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 Swedbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Swedbank.
Diversification Opportunities for SentinelOne and Swedbank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and Swedbank is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Swedbank AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank AB 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 Swedbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank AB has no effect on the direction of SentinelOne i.e., SentinelOne and Swedbank go up and down completely randomly.
Pair Corralation between SentinelOne and Swedbank
Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.13 times less return on investment than Swedbank. In addition to that, SentinelOne is 2.67 times more volatile than Swedbank AB. It trades about 0.02 of its total potential returns per unit of risk. Swedbank AB is currently generating about 0.07 per unit of volatility. If you would invest 17,229 in Swedbank AB on December 4, 2024 and sell it today you would earn a total of 8,881 from holding Swedbank AB or generate 51.55% 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. Swedbank AB
Performance |
| Timeline |
| SentinelOne |
| Swedbank AB |
SentinelOne and Swedbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Swedbank
The main advantage of trading using opposite SentinelOne and Swedbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Swedbank 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 Swedbank will offset losses from the drop in Swedbank's long position.| SentinelOne vs. Palo Alto Networks | ||
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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