Correlation Between SentinelOne and FIRST SAVINGS

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

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

Diversification Opportunities for SentinelOne and FIRST SAVINGS

0.32

Correlation Coefficient

SentinelOne  FIRST SAVINGS

Weak diversification

The 3 months correlation between SentinelOne and FIRST is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL 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 FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of SentinelOne i.e., SentinelOne and FIRST SAVINGS go up and down completely randomly.

Pair Corralation between SentinelOne and FIRST SAVINGS

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the FIRST SAVINGS. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 2.16 times less risky than FIRST SAVINGS. The stock trades about -0.02 of its potential returns per unit of risk. The FIRST SAVINGS FINL is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,200  in FIRST SAVINGS FINL on October 23, 2024 and sell it today you would earn a total of  60.00  from holding FIRST SAVINGS FINL or generate 2.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	88.89%
Values	Daily Returns

SentinelOne  vs.  FIRST SAVINGS FINL

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 latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

FIRST SAVINGS FINL

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FIRST SAVINGS FINL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FIRST SAVINGS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and FIRST SAVINGS

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

The idea behind SentinelOne and FIRST SAVINGS FINL 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.