Correlation Between SentinelOne and Decent Holding

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

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

Diversification Opportunities for SentinelOne and Decent Holding

-0.02

Correlation Coefficient

SentinelOne  Decent Holding

Good diversification

The 3 months correlation between SentinelOne and Decent is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Decent Holding Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Decent Holding Ordinary 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 Decent Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Decent Holding Ordinary has no effect on the direction of SentinelOne i.e., SentinelOne and Decent Holding go up and down completely randomly.

Pair Corralation between SentinelOne and Decent Holding

Taking into account the 90-day investment horizon SentinelOne is expected to generate 46.18 times less return on investment than Decent Holding. But when comparing it to its historical volatility, SentinelOne is 2.25 times less risky than Decent Holding. It trades about 0.01 of its potential returns per unit of risk. Decent Holding Ordinary is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  96.00  in Decent Holding Ordinary on May 1, 2025 and sell it today you would earn a total of  34.00  from holding Decent Holding Ordinary or generate 35.42% return on investment over 90 days.

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

SentinelOne  vs.  Decent Holding Ordinary

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Decent Holding Ordinary

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Decent Holding Ordinary are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Decent Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Decent Holding

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

The idea behind SentinelOne and Decent Holding Ordinary 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.