Correlation Between SentinelOne and Agree Realty

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

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

Diversification Opportunities for SentinelOne and Agree Realty

-0.45

Correlation Coefficient

SentinelOne  Agree Realty

Very good diversification

The 3 months correlation between SentinelOne and Agree is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty 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 Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of SentinelOne i.e., SentinelOne and Agree Realty go up and down completely randomly.

Pair Corralation between SentinelOne and Agree Realty

Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.81 times more return on investment than Agree Realty. However, SentinelOne is 3.81 times more volatile than Agree Realty. It trades about 0.08 of its potential returns per unit of risk. Agree Realty is currently generating about 0.23 per unit of risk. If you would invest  1,722  in SentinelOne on June 6, 2025 and sell it today you would earn a total of  80.00  from holding SentinelOne or generate 4.65% return on investment over 90 days.

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

SentinelOne  vs.  Agree Realty

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 comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Agree Realty

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agree Realty are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, Agree Realty may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with SentinelOne and Agree Realty

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

The idea behind SentinelOne and Agree Realty 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.