Correlation Between SentinelOne and Coursera

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

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

Diversification Opportunities for SentinelOne and Coursera

0.3

Correlation Coefficient

SentinelOne  Coursera

Weak diversification

The 3 months correlation between SentinelOne and Coursera is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera 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 Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of SentinelOne i.e., SentinelOne and Coursera go up and down completely randomly.

Pair Corralation between SentinelOne and Coursera

Taking into account the 90-day investment horizon SentinelOne is expected to generate 11.98 times less return on investment than Coursera. But when comparing it to its historical volatility, SentinelOne is 1.85 times less risky than Coursera. It trades about 0.02 of its potential returns per unit of risk. Coursera is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  841.00  in Coursera on May 1, 2025 and sell it today you would earn a total of  355.00  from holding Coursera or generate 42.21% 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.  Coursera

SentinelOne

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Coursera

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coursera are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Coursera reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Coursera

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

The idea behind SentinelOne and Coursera 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.

Check out your portfolio center.

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..