Correlation Between SentinelOne and Crocs

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

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

Diversification Opportunities for SentinelOne and Crocs

0.76

Correlation Coefficient

SentinelOne  Crocs

Poor diversification

The 3 months correlation between SentinelOne and Crocs is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Crocs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crocs Inc 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 Crocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crocs Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Crocs go up and down completely randomly.

Pair Corralation between SentinelOne and Crocs

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.94 times more return on investment than Crocs. However, SentinelOne is 1.07 times less risky than Crocs. It trades about 0.08 of its potential returns per unit of risk. Crocs Inc is currently generating about 0.08 per unit of risk. If you would invest  1,731  in SentinelOne on April 23, 2025 and sell it today you would earn a total of  194.00  from holding SentinelOne or generate 11.21% return on investment over 90 days.

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

SentinelOne  vs.  Crocs Inc

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SentinelOne unveiled solid returns over the last few months and may actually be approaching a breakup point.

Crocs Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Crocs Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Crocs showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Crocs

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

The idea behind SentinelOne and Crocs Inc 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.