Correlation Between SentinelOne and Pets At

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

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

Diversification Opportunities for SentinelOne and Pets At

-0.18

Correlation Coefficient

SentinelOne  Pets At

Good diversification

The 3 months correlation between SentinelOne and Pets is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Pets at Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pets at Home 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 Pets At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pets at Home has no effect on the direction of SentinelOne i.e., SentinelOne and Pets At go up and down completely randomly.

Pair Corralation between SentinelOne and Pets At

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Pets At. In addition to that, SentinelOne is 1.87 times more volatile than Pets at Home. It trades about 0.0 of its total potential returns per unit of risk. Pets at Home is currently generating about 0.02 per unit of volatility. If you would invest  276.00  in Pets at Home on May 2, 2025 and sell it today you would earn a total of  4.00  from holding Pets at Home or generate 1.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

SentinelOne  vs.  Pets at Home

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pets at Home

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pets at Home are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Pets At is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SentinelOne and Pets At

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

The idea behind SentinelOne and Pets at Home 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.