Correlation Between SentinelOne and CASI Pharmaceuticals

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

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

Diversification Opportunities for SentinelOne and CASI Pharmaceuticals

0.23

Correlation Coefficient

SentinelOne  CASI Pharmaceuticals

Modest diversification

The 3 months correlation between SentinelOne and CASI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CASI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CASI Pharmaceuticals 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 CASI Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CASI Pharmaceuticals has no effect on the direction of SentinelOne i.e., SentinelOne and CASI Pharmaceuticals go up and down completely randomly.

Pair Corralation between SentinelOne and CASI Pharmaceuticals

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.46 times more return on investment than CASI Pharmaceuticals. However, SentinelOne is 2.18 times less risky than CASI Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. CASI Pharmaceuticals is currently generating about -0.08 per unit of risk. If you would invest  1,842  in SentinelOne on April 25, 2025 and sell it today you would earn a total of  107.00  from holding SentinelOne or generate 5.81% 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.  CASI Pharmaceuticals

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CASI Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days CASI Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with SentinelOne and CASI Pharmaceuticals

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

The idea behind SentinelOne and CASI Pharmaceuticals 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..