Correlation Between SentinelOne and Cadence Bancorp

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

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

Diversification Opportunities for SentinelOne and Cadence Bancorp

-0.12

Correlation Coefficient

SentinelOne  Cadence Bancorp

Good diversification

The 3 months correlation between SentinelOne and Cadence is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Cadence Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadence 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 Cadence Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadence Bancorp has no effect on the direction of SentinelOne i.e., SentinelOne and Cadence Bancorp go up and down completely randomly.

Pair Corralation between SentinelOne and Cadence Bancorp

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Cadence Bancorp. In addition to that, SentinelOne is 1.64 times more volatile than Cadence Bancorp. It trades about -0.08 of its total potential returns per unit of risk. Cadence Bancorp is currently generating about 0.11 per unit of volatility. If you would invest  3,143  in Cadence Bancorp on May 18, 2025 and sell it today you would earn a total of  394.00  from holding Cadence Bancorp or generate 12.54% return on investment over 90 days.

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

SentinelOne  vs.  Cadence Bancorp

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Cadence Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cadence Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Cadence Bancorp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Cadence Bancorp

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

The idea behind SentinelOne and Cadence 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.