Correlation Between SentinelOne and Victory Bancorp

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

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

Diversification Opportunities for SentinelOne and Victory Bancorp

0.74

Correlation Coefficient

SentinelOne  Victory Bancorp

Poor diversification

The 3 months correlation between SentinelOne and Victory is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and The Victory Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Bancorp 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 Victory Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Bancorp has no effect on the direction of SentinelOne i.e., SentinelOne and Victory Bancorp go up and down completely randomly.

Pair Corralation between SentinelOne and Victory Bancorp

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.33 times more return on investment than Victory Bancorp. However, SentinelOne is 2.33 times more volatile than The Victory Bancorp. It trades about 0.01 of its potential returns per unit of risk. The Victory Bancorp is currently generating about -0.02 per unit of risk. If you would invest  2,611  in SentinelOne on January 26, 2024 and sell it today you would lose (454.00) from holding SentinelOne or give up 17.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	78.54%
Values	Daily Returns

SentinelOne  vs.  The Victory Bancorp

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 May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Victory Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Victory Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with SentinelOne and Victory Bancorp

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

The idea behind SentinelOne and The Victory Bancorp 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.