Correlation Between SentinelOne and Swedbank

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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

SentinelOneSwedbankDiversified AwaySentinelOneSwedbankDiversified Away100%
-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 Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SentinelOne  vs.  Swedbank AB

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-1001020
JavaScript chart by amCharts 3.21.15S SWED-A
       Timeline  
SentinelOne 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar2022242628
Swedbank AB 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Swedbank AB are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, Swedbank sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFebMar210220230240250260

SentinelOne and Swedbank Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.77-3.57-2.37-1.18-0.01670.971.972.973.974.97 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15S SWED-A
       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.
The idea behind SentinelOne and Swedbank AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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