Correlation Between SentinelOne and Emerging Markets

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

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

Diversification Opportunities for SentinelOne and Emerging Markets

-0.16

Correlation Coefficient

SentinelOne  Emerging Markets

Good diversification

The 3 months correlation between SentinelOne and Emerging is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Emerging Markets Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Value 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Value has no effect on the direction of SentinelOne i.e., SentinelOne and Emerging Markets go up and down completely randomly.

Pair Corralation between SentinelOne and Emerging Markets

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Emerging Markets. In addition to that, SentinelOne is 4.6 times more volatile than Emerging Markets Value. It trades about -0.07 of its total potential returns per unit of risk. Emerging Markets Value is currently generating about 0.23 per unit of volatility. If you would invest  3,217  in Emerging Markets Value on May 16, 2025 and sell it today you would earn a total of  311.00  from holding Emerging Markets Value or generate 9.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SentinelOne  vs.  Emerging Markets Value

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.

Emerging Markets Value

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Emerging Markets Value are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Emerging Markets may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Emerging Markets

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

The idea behind SentinelOne and Emerging Markets Value 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.