Correlation Between AES and SentinelOne

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

By analyzing existing cross correlation between The AES and SentinelOne, you can compare the effects of market volatilities on AES and SentinelOne 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 AES with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of AES and SentinelOne.

Diversification Opportunities for AES and SentinelOne

-0.13

Correlation Coefficient

AES  SentinelOne

Good diversification

The 3 months correlation between AES and SentinelOne is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding The AES and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and AES 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 The AES are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of AES i.e., AES and SentinelOne go up and down completely randomly.

Pair Corralation between AES and SentinelOne

Considering the 90-day investment horizon The AES is expected to generate 0.64 times more return on investment than SentinelOne. However, The AES is 1.56 times less risky than SentinelOne. It trades about -0.03 of its potential returns per unit of risk. SentinelOne is currently generating about -0.23 per unit of risk. If you would invest  1,351  in The AES on May 22, 2025 and sell it today you would lose (21.00) from holding The AES or give up 1.55% of portfolio value over 90 days.

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

The AES  vs.  SentinelOne

AES

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The AES are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, AES unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 weak 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.

Pair Trading with AES and SentinelOne

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

The idea behind The AES and SentinelOne 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.