Correlation Between SentinelOne and Bankinvest Danske

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Bankinvest Danske 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 Bankinvest Danske into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and Bankinvest Danske, you can compare the effects of market volatilities on SentinelOne and Bankinvest Danske 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 Bankinvest Danske. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Bankinvest Danske.

Diversification Opportunities for SentinelOne and Bankinvest Danske

-0.47

Correlation Coefficient

SentinelOne  Bankinvest Danske

Very good diversification

The 3 months correlation between SentinelOne and Bankinvest is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Bankinvest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinvest Danske 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 Bankinvest Danske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinvest Danske has no effect on the direction of SentinelOne i.e., SentinelOne and Bankinvest Danske go up and down completely randomly.

Pair Corralation between SentinelOne and Bankinvest Danske

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Bankinvest Danske. In addition to that, SentinelOne is 4.47 times more volatile than Bankinvest Danske. It trades about -0.11 of its total potential returns per unit of risk. Bankinvest Danske is currently generating about 0.13 per unit of volatility. If you would invest  21,800  in Bankinvest Danske on February 19, 2024 and sell it today you would earn a total of  1,340  from holding Bankinvest Danske or generate 6.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.31%
Values	Daily Returns

SentinelOne  vs.  Bankinvest Danske

SentinelOne

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bankinvest Danske

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bankinvest Danske are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak forward-looking signals, Bankinvest Danske may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with SentinelOne and Bankinvest Danske

The main advantage of trading using opposite SentinelOne and Bankinvest Danske positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Bankinvest Danske 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 Bankinvest Danske will offset losses from the drop in Bankinvest Danske's long position.

The idea behind SentinelOne and Bankinvest Danske 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.