Correlation Between SentinelOne and Exchange Bank

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

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

Diversification Opportunities for SentinelOne and Exchange Bank

0.05

Correlation Coefficient

SentinelOne  Exchange Bank

Significant diversification

The 3 months correlation between SentinelOne and Exchange is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Exchange Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Bank 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 Exchange Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Bank has no effect on the direction of SentinelOne i.e., SentinelOne and Exchange Bank go up and down completely randomly.

Pair Corralation between SentinelOne and Exchange Bank

Taking into account the 90-day investment horizon SentinelOne is expected to generate 49.83 times less return on investment than Exchange Bank. In addition to that, SentinelOne is 1.58 times more volatile than Exchange Bank. It trades about 0.0 of its total potential returns per unit of risk. Exchange Bank is currently generating about 0.1 per unit of volatility. If you would invest  10,381  in Exchange Bank on July 5, 2025 and sell it today you would earn a total of  1,119  from holding Exchange Bank or generate 10.78% return on investment over 90 days.

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

SentinelOne  vs.  Exchange Bank

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

Exchange Bank

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Bank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Exchange Bank may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with SentinelOne and Exchange Bank

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

The idea behind SentinelOne and Exchange Bank 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..