Correlation Between SentinelOne and ChargePoint Holdings

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

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

Diversification Opportunities for SentinelOne and ChargePoint Holdings

0.1

Correlation Coefficient

SentinelOne  ChargePoint Holdings

Average diversification

The 3 months correlation between SentinelOne and ChargePoint is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ChargePoint Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePoint Holdings 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 ChargePoint Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePoint Holdings has no effect on the direction of SentinelOne i.e., SentinelOne and ChargePoint Holdings go up and down completely randomly.

Pair Corralation between SentinelOne and ChargePoint Holdings

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.06 times less return on investment than ChargePoint Holdings. But when comparing it to its historical volatility, SentinelOne is 1.93 times less risky than ChargePoint Holdings. It trades about 0.05 of its potential returns per unit of risk. ChargePoint Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  67.00  in ChargePoint Holdings on April 25, 2025 and sell it today you would earn a total of  0.00  from holding ChargePoint Holdings or generate 0.0% return on investment over 90 days.

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

SentinelOne  vs.  ChargePoint Holdings

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.

ChargePoint Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ChargePoint Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ChargePoint Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SentinelOne and ChargePoint Holdings

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

The idea behind SentinelOne and ChargePoint Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.