Correlation Between SentinelOne and Exchange Traded

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

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

Diversification Opportunities for SentinelOne and Exchange Traded

0.22

Correlation Coefficient

SentinelOne  Exchange Traded

Modest diversification

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

Pair Corralation between SentinelOne and Exchange Traded

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Exchange Traded. In addition to that, SentinelOne is 2.48 times more volatile than Exchange Traded Concepts. It trades about -0.07 of its total potential returns per unit of risk. Exchange Traded Concepts is currently generating about 0.08 per unit of volatility. If you would invest  2,562  in Exchange Traded Concepts on September 5, 2025 and sell it today you would earn a total of  121.00  from holding Exchange Traded Concepts or generate 4.72% return on investment over 90 days.

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

SentinelOne  vs.  Exchange Traded Concepts

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 inconsistent 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.

Exchange Traded Concepts

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Traded Concepts are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, Exchange Traded is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with SentinelOne and Exchange Traded

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

The idea behind SentinelOne and Exchange Traded Concepts 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.