Correlation Between SentinelOne and Forwardly

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

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

Diversification Opportunities for SentinelOne and Forwardly

-0.04

Correlation Coefficient

SentinelOne  Forwardly

Good diversification

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

Pair Corralation between SentinelOne and Forwardly

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.35 times more return on investment than Forwardly. However, SentinelOne is 2.87 times less risky than Forwardly. It trades about 0.06 of its potential returns per unit of risk. Forwardly is currently generating about -0.11 per unit of risk. If you would invest  1,761  in SentinelOne on June 29, 2025 and sell it today you would earn a total of  54.00  from holding SentinelOne or generate 3.07% return on investment over 90 days.

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

SentinelOne  vs.  Forwardly

SentinelOne

Risk-Adjusted Performance

Weakest

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.

Forwardly

Risk-Adjusted Performance

Weakest

Over the last 90 days Forwardly has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Forwardly is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with SentinelOne and Forwardly

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

The idea behind SentinelOne and Forwardly 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.