Correlation Between SentinelOne and Evli Pankki

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

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

Diversification Opportunities for SentinelOne and Evli Pankki

0.16

Correlation Coefficient

SentinelOne  Evli Pankki

Average diversification

The 3 months correlation between SentinelOne and Evli is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Evli Pankki Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evli Pankki Oyj 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 Evli Pankki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evli Pankki Oyj has no effect on the direction of SentinelOne i.e., SentinelOne and Evli Pankki go up and down completely randomly.

Pair Corralation between SentinelOne and Evli Pankki

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Evli Pankki. In addition to that, SentinelOne is 1.61 times more volatile than Evli Pankki Oyj. It trades about -0.17 of its total potential returns per unit of risk. Evli Pankki Oyj is currently generating about 0.16 per unit of volatility. If you would invest  1,795  in Evli Pankki Oyj on October 8, 2024 and sell it today you would earn a total of  65.00  from holding Evli Pankki Oyj or generate 3.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	84.21%
Values	Daily Returns

SentinelOne  vs.  Evli Pankki Oyj

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 comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Evli Pankki Oyj

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evli Pankki Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Evli Pankki is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SentinelOne and Evli Pankki

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

The idea behind SentinelOne and Evli Pankki Oyj 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.