Correlation Between SentinelOne and Absolute Capital

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

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

Diversification Opportunities for SentinelOne and Absolute Capital

-0.18

Correlation Coefficient

SentinelOne  Absolute Capital

Good diversification

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

Pair Corralation between SentinelOne and Absolute Capital

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Absolute Capital. In addition to that, SentinelOne is 5.82 times more volatile than Absolute Capital Defender. It trades about 0.0 of its total potential returns per unit of risk. Absolute Capital Defender is currently generating about 0.22 per unit of volatility. If you would invest  1,097  in Absolute Capital Defender on May 3, 2025 and sell it today you would earn a total of  70.00  from holding Absolute Capital Defender or generate 6.38% return on investment over 90 days.

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

SentinelOne  vs.  Absolute Capital Defender

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.

Absolute Capital Defender

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Absolute Capital Defender are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Absolute Capital may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Absolute Capital

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

The idea behind SentinelOne and Absolute Capital Defender 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 Stocks Directory module to find actively traded stocks across global markets.