Correlation Between Bogle Small and Sentinel International

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

By analyzing existing cross correlation between Bogle Small Cap and Sentinel International Equity, you can compare the effects of market volatilities on Bogle Small and Sentinel International 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 Bogle Small with a short position of Sentinel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bogle Small and Sentinel International.

Diversification Opportunities for Bogle Small and Sentinel International

0.32

Correlation Coefficient

Bogle Small  Sentinel International

Weak diversification

The 3 months correlation between Bogle and Sentinel is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bogle Small Cap and Sentinel International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel International and Bogle Small 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 Bogle Small Cap are associated (or correlated) with Sentinel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel International has no effect on the direction of Bogle Small i.e., Bogle Small and Sentinel International go up and down completely randomly.

Pair Corralation between Bogle Small and Sentinel International

Assuming the 90 days horizon Bogle Small is expected to generate 1.25 times less return on investment than Sentinel International. In addition to that, Bogle Small is 1.91 times more volatile than Sentinel International Equity. It trades about 0.08 of its total potential returns per unit of risk. Sentinel International Equity is currently generating about 0.18 per unit of volatility. If you would invest  1,686  in Sentinel International Equity on August 9, 2025 and sell it today you would earn a total of  122.00  from holding Sentinel International Equity or generate 7.24% return on investment over 90 days.

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

Bogle Small Cap  vs.  Sentinel International Equity

Bogle Small Cap

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bogle Small Cap are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Bogle Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sentinel International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sentinel International Equity are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Sentinel International may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Bogle Small and Sentinel International

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

The idea behind Bogle Small Cap and Sentinel International Equity 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.