Correlation Between SentinelOne and Cheche Group

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

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

Diversification Opportunities for SentinelOne and Cheche Group

0.35

Correlation Coefficient

SentinelOne  Cheche Group

Weak diversification

The 3 months correlation between SentinelOne and Cheche is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Cheche Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Class 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 Cheche Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheche Group Class has no effect on the direction of SentinelOne i.e., SentinelOne and Cheche Group go up and down completely randomly.

Pair Corralation between SentinelOne and Cheche Group

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.21 times more return on investment than Cheche Group. However, SentinelOne is 1.21 times more volatile than Cheche Group Class. It trades about 0.0 of its potential returns per unit of risk. Cheche Group Class is currently generating about -0.08 per unit of risk. If you would invest  1,888  in SentinelOne on May 2, 2025 and sell it today you would lose (54.00) from holding SentinelOne or give up 2.86% of portfolio value over 90 days.

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

SentinelOne  vs.  Cheche Group Class

SentinelOne

Risk-Adjusted Performance

Very Weak

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Cheche Group Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cheche Group Class has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with SentinelOne and Cheche Group

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

The idea behind SentinelOne and Cheche Group Class 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.