Correlation Between SentinelOne and Barclays PLC

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

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

Diversification Opportunities for SentinelOne and Barclays PLC

-0.15

Correlation Coefficient

SentinelOne  Barclays PLC

Good diversification

The 3 months correlation between SentinelOne and Barclays is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Barclays PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC ADR 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 Barclays PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays PLC ADR has no effect on the direction of SentinelOne i.e., SentinelOne and Barclays PLC go up and down completely randomly.

Pair Corralation between SentinelOne and Barclays PLC

Taking into account the 90-day investment horizon SentinelOne is expected to generate 7.65 times less return on investment than Barclays PLC. In addition to that, SentinelOne is 1.75 times more volatile than Barclays PLC ADR. It trades about 0.01 of its total potential returns per unit of risk. Barclays PLC ADR is currently generating about 0.09 per unit of volatility. If you would invest  2,012  in Barclays PLC ADR on August 19, 2025 and sell it today you would earn a total of  158.00  from holding Barclays PLC ADR or generate 7.85% return on investment over 90 days.

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

SentinelOne  vs.  Barclays PLC ADR

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.

Barclays PLC ADR

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Barclays PLC ADR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Barclays PLC may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with SentinelOne and Barclays PLC

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

The idea behind SentinelOne and Barclays PLC ADR 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.