Correlation Between SentinelOne and Dime Community

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Can any of the company-specific risk be diversified away by investing in both SentinelOne and Dime Community 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 Dime Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Dime Community Bancshares, you can compare the effects of market volatilities on SentinelOne and Dime Community 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 Dime Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Dime Community.

Diversification Opportunities for SentinelOne and Dime Community

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between SentinelOne and Dime is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Dime Community Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dime Community Bancshares 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 Dime Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dime Community Bancshares has no effect on the direction of SentinelOne i.e., SentinelOne and Dime Community go up and down completely randomly.

Pair Corralation between SentinelOne and Dime Community

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Dime Community. In addition to that, SentinelOne is 1.02 times more volatile than Dime Community Bancshares. It trades about -0.06 of its total potential returns per unit of risk. Dime Community Bancshares is currently generating about -0.03 per unit of volatility. If you would invest  3,028  in Dime Community Bancshares on August 30, 2025 and sell it today you would lose (169.00) from holding Dime Community Bancshares or give up 5.58% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

SentinelOne  vs.  Dime Community Bancshares

 Performance 
       Timeline  
SentinelOne 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
Dime Community Bancshares 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Dime Community Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Dime Community is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

SentinelOne and Dime Community Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SentinelOne and Dime Community

The main advantage of trading using opposite SentinelOne and Dime Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Dime Community 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 Dime Community will offset losses from the drop in Dime Community's long position.
The idea behind SentinelOne and Dime Community Bancshares 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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