Correlation Between SentinelOne and Evertec

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

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

Diversification Opportunities for SentinelOne and Evertec

-0.79

Correlation Coefficient

SentinelOne  Evertec

Pay attention - limited upside

The 3 months correlation between SentinelOne and Evertec is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Evertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertec 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 Evertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertec has no effect on the direction of SentinelOne i.e., SentinelOne and Evertec go up and down completely randomly.

Pair Corralation between SentinelOne and Evertec

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Evertec. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.03 times less risky than Evertec. The stock trades about -0.12 of its potential returns per unit of risk. The Evertec is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,405  in Evertec on January 4, 2025 and sell it today you would earn a total of  127.00  from holding Evertec or generate 3.73% return on investment over 90 days.

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

SentinelOne  vs.  Evertec

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 inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Evertec

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Evertec are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Evertec 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 Evertec

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

The idea behind SentinelOne and Evertec 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.