Correlation Between SentinelOne and AMREP

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

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

Diversification Opportunities for SentinelOne and AMREP

0.05

Correlation Coefficient

SentinelOne  AMREP

Significant diversification

The 3 months correlation between SentinelOne and AMREP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP 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 AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of SentinelOne i.e., SentinelOne and AMREP go up and down completely randomly.

Pair Corralation between SentinelOne and AMREP

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the AMREP. In addition to that, SentinelOne is 1.2 times more volatile than AMREP. It trades about -0.07 of its total potential returns per unit of risk. AMREP is currently generating about 0.09 per unit of volatility. If you would invest  1,980  in AMREP on May 28, 2025 and sell it today you would earn a total of  257.00  from holding AMREP or generate 12.98% return on investment over 90 days.

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

SentinelOne  vs.  AMREP

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.

AMREP

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in AMREP are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, AMREP reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and AMREP

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

The idea behind SentinelOne and AMREP 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.