Correlation Between SentinelOne and Laurentian Bank

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

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

Diversification Opportunities for SentinelOne and Laurentian Bank

-0.24

Correlation Coefficient

SentinelOne  Laurentian Bank

Very good diversification

The 3 months correlation between SentinelOne and Laurentian is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Laurentian Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laurentian 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 Laurentian Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laurentian Bank has no effect on the direction of SentinelOne i.e., SentinelOne and Laurentian Bank go up and down completely randomly.

Pair Corralation between SentinelOne and Laurentian Bank

Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.04 times less return on investment than Laurentian Bank. In addition to that, SentinelOne is 4.15 times more volatile than Laurentian Bank of. It trades about 0.02 of its total potential returns per unit of risk. Laurentian Bank of is currently generating about 0.35 per unit of volatility. If you would invest  2,029  in Laurentian Bank of on May 1, 2025 and sell it today you would earn a total of  308.00  from holding Laurentian Bank of or generate 15.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

SentinelOne  vs.  Laurentian Bank of

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Laurentian Bank

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Laurentian Bank of are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Laurentian Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Laurentian Bank

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

The idea behind SentinelOne and Laurentian Bank of 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.