Correlation Between SentinelOne and Utilities Fund

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

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

Diversification Opportunities for SentinelOne and Utilities Fund

-0.27

Correlation Coefficient

SentinelOne  Utilities Fund

Very good diversification

The 3 months correlation between SentinelOne and Utilities is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Utilities Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Fund Investor 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 Utilities Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Fund Investor has no effect on the direction of SentinelOne i.e., SentinelOne and Utilities Fund go up and down completely randomly.

Pair Corralation between SentinelOne and Utilities Fund

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Utilities Fund. In addition to that, SentinelOne is 3.29 times more volatile than Utilities Fund Investor. It trades about -0.13 of its total potential returns per unit of risk. Utilities Fund Investor is currently generating about 0.15 per unit of volatility. If you would invest  1,857  in Utilities Fund Investor on May 13, 2025 and sell it today you would earn a total of  151.00  from holding Utilities Fund Investor or generate 8.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

SentinelOne  vs.  Utilities Fund Investor

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Utilities Fund Investor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Utilities Fund Investor are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Utilities Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Utilities Fund

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

The idea behind SentinelOne and Utilities Fund Investor 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..