Correlation Between Live Oak and SentinelOne
Can any of the company-specific risk be diversified away by investing in both Live Oak and SentinelOne 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 Live Oak and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Bancshares and SentinelOne, you can compare the effects of market volatilities on Live Oak and SentinelOne 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 Live Oak with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and SentinelOne.
Diversification Opportunities for Live Oak and SentinelOne
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Live and SentinelOne is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Bancshares and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Live Oak 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 Live Oak Bancshares are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of Live Oak i.e., Live Oak and SentinelOne go up and down completely randomly.
Pair Corralation between Live Oak and SentinelOne
Considering the 90-day investment horizon Live Oak Bancshares is expected to generate 1.13 times more return on investment than SentinelOne. However, Live Oak is 1.13 times more volatile than SentinelOne. It trades about 0.0 of its potential returns per unit of risk. SentinelOne is currently generating about -0.07 per unit of risk. If you would invest 4,009 in Live Oak Bancshares on January 25, 2024 and sell it today you would lose (22.00) from holding Live Oak Bancshares or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Bancshares vs. SentinelOne
Performance |
| Timeline |
| Live Oak Bancshares |
| SentinelOne |
Live Oak and SentinelOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and SentinelOne
The main advantage of trading using opposite Live Oak and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.The idea behind Live Oak Bancshares and SentinelOne 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.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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