Correlation Between SentinelOne and Apple Hospitality

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

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

Diversification Opportunities for SentinelOne and Apple Hospitality

0.17

Correlation Coefficient

SentinelOne  Apple Hospitality

Average diversification

The 3 months correlation between SentinelOne and Apple is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Apple Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Hospitality REIT 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 Apple Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Hospitality REIT has no effect on the direction of SentinelOne i.e., SentinelOne and Apple Hospitality go up and down completely randomly.

Pair Corralation between SentinelOne and Apple Hospitality

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Apple Hospitality. In addition to that, SentinelOne is 2.16 times more volatile than Apple Hospitality REIT. It trades about -0.06 of its total potential returns per unit of risk. Apple Hospitality REIT is currently generating about 0.11 per unit of volatility. If you would invest  1,136  in Apple Hospitality REIT on May 21, 2025 and sell it today you would earn a total of  104.00  from holding Apple Hospitality REIT or generate 9.15% return on investment over 90 days.

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

SentinelOne  vs.  Apple Hospitality REIT

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 weak 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.

Apple Hospitality REIT

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Hospitality REIT are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, Apple Hospitality may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Apple Hospitality

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

The idea behind SentinelOne and Apple Hospitality REIT 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.