Correlation Between SentinelOne and Banc Of

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

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

Diversification Opportunities for SentinelOne and Banc Of

-0.28

Correlation Coefficient

SentinelOne  Banc Of

Very good diversification

The 3 months correlation between SentinelOne and Banc is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Banc of California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banc of California 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 Banc Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banc of California has no effect on the direction of SentinelOne i.e., SentinelOne and Banc Of go up and down completely randomly.

Pair Corralation between SentinelOne and Banc Of

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Banc Of. In addition to that, SentinelOne is 5.3 times more volatile than Banc of California. It trades about -0.11 of its total potential returns per unit of risk. Banc of California is currently generating about 0.12 per unit of volatility. If you would invest  2,419  in Banc of California on December 30, 2024 and sell it today you would earn a total of  83.00  from holding Banc of California or generate 3.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Banc of California

SentinelOne

Risk-Adjusted Performance

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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Banc of California

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Banc of California are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Banc Of is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SentinelOne and Banc Of

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

The idea behind SentinelOne and Banc of California 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.