Correlation Between SentinelOne and CSB Bank

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

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

Diversification Opportunities for SentinelOne and CSB Bank

-0.28

Correlation Coefficient

SentinelOne  CSB Bank

Very good diversification

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

Pair Corralation between SentinelOne and CSB Bank

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.35 times less return on investment than CSB Bank. In addition to that, SentinelOne is 1.82 times more volatile than CSB Bank Limited. It trades about 0.05 of its total potential returns per unit of risk. CSB Bank Limited is currently generating about 0.2 per unit of volatility. If you would invest  35,570  in CSB Bank Limited on April 25, 2025 and sell it today you would earn a total of  7,020  from holding CSB Bank Limited or generate 19.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

SentinelOne  vs.  CSB Bank Limited

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CSB Bank Limited

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CSB Bank Limited are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, CSB Bank disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and CSB Bank

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

The idea behind SentinelOne and CSB Bank Limited 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.

Check out your portfolio center.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.