Correlation Between SentinelOne and Excelerate Energy

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

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

Diversification Opportunities for SentinelOne and Excelerate Energy

-0.18

Correlation Coefficient

SentinelOne  Excelerate Energy

Good diversification

The 3 months correlation between SentinelOne and Excelerate is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Excelerate Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelerate Energy 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 Excelerate Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelerate Energy has no effect on the direction of SentinelOne i.e., SentinelOne and Excelerate Energy go up and down completely randomly.

Pair Corralation between SentinelOne and Excelerate Energy

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Excelerate Energy. In addition to that, SentinelOne is 1.13 times more volatile than Excelerate Energy. It trades about 0.0 of its total potential returns per unit of risk. Excelerate Energy is currently generating about 0.01 per unit of volatility. If you would invest  2,572  in Excelerate Energy on May 3, 2025 and sell it today you would lose (20.00) from holding Excelerate Energy or give up 0.78% of portfolio value over 90 days.

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

SentinelOne  vs.  Excelerate Energy

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.

Excelerate Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Excelerate Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Excelerate Energy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SentinelOne and Excelerate Energy

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

The idea behind SentinelOne and Excelerate Energy 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.