Correlation Between SentinelOne and Cipher Pharmaceuticals

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

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

Diversification Opportunities for SentinelOne and Cipher Pharmaceuticals

-0.57

Correlation Coefficient

SentinelOne  Cipher Pharmaceuticals

Excellent diversification

The 3 months correlation between SentinelOne and Cipher is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Cipher Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipher 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 Cipher Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipher Pharmaceuticals has no effect on the direction of SentinelOne i.e., SentinelOne and Cipher Pharmaceuticals go up and down completely randomly.

Pair Corralation between SentinelOne and Cipher Pharmaceuticals

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Cipher Pharmaceuticals. In addition to that, SentinelOne is 1.04 times more volatile than Cipher Pharmaceuticals. It trades about -0.07 of its total potential returns per unit of risk. Cipher Pharmaceuticals is currently generating about 0.12 per unit of volatility. If you would invest  1,248  in Cipher Pharmaceuticals on May 16, 2025 and sell it today you would earn a total of  249.00  from holding Cipher Pharmaceuticals or generate 19.95% return on investment over 90 days.

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

SentinelOne  vs.  Cipher Pharmaceuticals

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 weak 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.

Cipher Pharmaceuticals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cipher Pharmaceuticals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical indicators, Cipher Pharmaceuticals displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Cipher Pharmaceuticals

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

The idea behind SentinelOne and Cipher 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.