Correlation Between SentinelOne and Casella Waste

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

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

Diversification Opportunities for SentinelOne and Casella Waste

0.09

Correlation Coefficient

SentinelOne  Casella Waste

Significant diversification

The 3 months correlation between SentinelOne and Casella is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Casella Waste Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casella Waste Systems 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 Casella Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casella Waste Systems has no effect on the direction of SentinelOne i.e., SentinelOne and Casella Waste go up and down completely randomly.

Pair Corralation between SentinelOne and Casella Waste

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.53 times more return on investment than Casella Waste. However, SentinelOne is 1.53 times more volatile than Casella Waste Systems. It trades about -0.05 of its potential returns per unit of risk. Casella Waste Systems is currently generating about -0.17 per unit of risk. If you would invest  1,960  in SentinelOne on July 28, 2025 and sell it today you would lose (195.00) from holding SentinelOne or give up 9.95% of portfolio value over 90 days.

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

SentinelOne  vs.  Casella Waste Systems

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 latest conflicting performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Casella Waste Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days Casella Waste Systems 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 November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SentinelOne and Casella Waste

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

The idea behind SentinelOne and Casella Waste Systems 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.