Correlation Between SentinelOne and ProShares Trust

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

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

Diversification Opportunities for SentinelOne and ProShares Trust

-0.21

Correlation Coefficient

SentinelOne  ProShares Trust

Very good diversification

The 3 months correlation between SentinelOne and ProShares is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust 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 ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of SentinelOne i.e., SentinelOne and ProShares Trust go up and down completely randomly.

Pair Corralation between SentinelOne and ProShares Trust

Taking into account the 90-day investment horizon SentinelOne is expected to generate 18.63 times less return on investment than ProShares Trust. But when comparing it to its historical volatility, SentinelOne is 3.43 times less risky than ProShares Trust. It trades about 0.05 of its potential returns per unit of risk. ProShares Trust is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  2,295  in ProShares Trust on April 25, 2025 and sell it today you would earn a total of  5,403  from holding ProShares Trust or generate 235.42% return on investment over 90 days.

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

SentinelOne  vs.  ProShares Trust

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ProShares Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Trust are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, ProShares Trust unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and ProShares Trust

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

The idea behind SentinelOne and ProShares Trust 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.