Correlation Between SentinelOne and FutureFuel Corp

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

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

Diversification Opportunities for SentinelOne and FutureFuel Corp

0.04

Correlation Coefficient

SentinelOne  FutureFuel Corp

Significant diversification

The 3 months correlation between SentinelOne and FutureFuel is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and FutureFuel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FutureFuel Corp 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 FutureFuel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FutureFuel Corp has no effect on the direction of SentinelOne i.e., SentinelOne and FutureFuel Corp go up and down completely randomly.

Pair Corralation between SentinelOne and FutureFuel Corp

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.17 times less return on investment than FutureFuel Corp. In addition to that, SentinelOne is 1.26 times more volatile than FutureFuel Corp. It trades about 0.02 of its total potential returns per unit of risk. FutureFuel Corp is currently generating about 0.03 per unit of volatility. If you would invest  405.00  in FutureFuel Corp on May 1, 2025 and sell it today you would earn a total of  11.00  from holding FutureFuel Corp or generate 2.72% return on investment over 90 days.

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

SentinelOne  vs.  FutureFuel Corp

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

FutureFuel Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FutureFuel Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, FutureFuel Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SentinelOne and FutureFuel Corp

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

The idea behind SentinelOne and FutureFuel Corp 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 CEOs Directory module to screen CEOs from public companies around the world.