Correlation Between Knight Transportation and SentinelOne

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

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

Diversification Opportunities for Knight Transportation and SentinelOne

-0.54

Correlation Coefficient

Knight Transportation  SentinelOne

Excellent diversification

The 3 months correlation between Knight and SentinelOne is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Knight Transportation and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and Knight Transportation 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 Knight Transportation 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 Knight Transportation i.e., Knight Transportation and SentinelOne go up and down completely randomly.

Pair Corralation between Knight Transportation and SentinelOne

Considering the 90-day investment horizon Knight Transportation is expected to generate 1.17 times more return on investment than SentinelOne. However, Knight Transportation is 1.17 times more volatile than SentinelOne. It trades about 0.06 of its potential returns per unit of risk. SentinelOne is currently generating about -0.06 per unit of risk. If you would invest  4,341  in Knight Transportation on September 3, 2025 and sell it today you would earn a total of  393.00  from holding Knight Transportation or generate 9.05% return on investment over 90 days.

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

Knight Transportation  vs.  SentinelOne

Knight Transportation

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Knight Transportation are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Knight Transportation may actually be approaching a critical reversion point that can send shares even higher in January 2026.

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 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.

Pair Trading with Knight Transportation and SentinelOne

The main advantage of trading using opposite Knight Transportation and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knight Transportation 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 Knight Transportation 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.