Correlation Between SentinelOne and Api Group

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

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

Diversification Opportunities for SentinelOne and Api Group

-0.22

Correlation Coefficient

SentinelOne  Api Group

Very good diversification

The 3 months correlation between SentinelOne and Api is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Api Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Api Group Corp 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 Api Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Api Group Corp has no effect on the direction of SentinelOne i.e., SentinelOne and Api Group go up and down completely randomly.

Pair Corralation between SentinelOne and Api Group

Taking into account the 90-day investment horizon SentinelOne is expected to generate 28.41 times less return on investment than Api Group. In addition to that, SentinelOne is 2.11 times more volatile than Api Group Corp. It trades about 0.01 of its total potential returns per unit of risk. Api Group Corp is currently generating about 0.32 per unit of volatility. If you would invest  2,689  in Api Group Corp on May 1, 2025 and sell it today you would earn a total of  769.50  from holding Api Group Corp or generate 28.62% return on investment over 90 days.

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

SentinelOne  vs.  Api Group Corp

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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

Api Group Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Api Group Corp are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Api Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Api Group

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

The idea behind SentinelOne and Api Group Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.