Correlation Between SentinelOne and A1

Can any of the company-specific risk be diversified away by investing in both SentinelOne and A1 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 A1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and A1 Group, you can compare the effects of market volatilities on SentinelOne and A1 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 A1. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and A1.

Diversification Opportunities for SentinelOne and A1

0.13

Correlation Coefficient

SentinelOne  A1

Average diversification

The 3 months correlation between SentinelOne and A1 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and A1 Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A1 Group 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 A1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A1 Group has no effect on the direction of SentinelOne i.e., SentinelOne and A1 go up and down completely randomly.

Pair Corralation between SentinelOne and A1

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the A1. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 2.99 times less risky than A1. The stock trades about -0.02 of its potential returns per unit of risk. The A1 Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.48  in A1 Group on July 18, 2025 and sell it today you would earn a total of  0.02  from holding A1 Group or generate 4.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

SentinelOne  vs.  A1 Group

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

A1 Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in A1 Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, A1 displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and A1

The main advantage of trading using opposite SentinelOne and A1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, A1 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 A1 will offset losses from the drop in A1's long position.

The idea behind SentinelOne and A1 Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.