Correlation Between SentinelOne and First National

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

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

Diversification Opportunities for SentinelOne and First National

0.24

Correlation Coefficient

SentinelOne  First National

Modest diversification

The 3 months correlation between SentinelOne and First is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First National Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National 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 First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Energy has no effect on the direction of SentinelOne i.e., SentinelOne and First National go up and down completely randomly.

Pair Corralation between SentinelOne and First National

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.7 times more return on investment than First National. However, SentinelOne is 1.43 times less risky than First National. It trades about 0.04 of its potential returns per unit of risk. First National Energy is currently generating about -0.15 per unit of risk. If you would invest  1,878  in SentinelOne on April 29, 2025 and sell it today you would earn a total of  82.00  from holding SentinelOne or generate 4.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

SentinelOne  vs.  First National Energy

SentinelOne

Risk-Adjusted Performance

Weak

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.

First National Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days First National Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with SentinelOne and First National

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

The idea behind SentinelOne and First National 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.