Correlation Between SentinelOne and Aggressive Growth

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

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

Diversification Opportunities for SentinelOne and Aggressive Growth

-0.18

Correlation Coefficient

SentinelOne  Aggressive Growth

Good diversification

The 3 months correlation between SentinelOne and Aggressive is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Aggressive Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth 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 Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of SentinelOne i.e., SentinelOne and Aggressive Growth go up and down completely randomly.

Pair Corralation between SentinelOne and Aggressive Growth

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.97 times less return on investment than Aggressive Growth. In addition to that, SentinelOne is 4.8 times more volatile than Aggressive Growth Allocation. It trades about 0.02 of its total potential returns per unit of risk. Aggressive Growth Allocation is currently generating about 0.3 per unit of volatility. If you would invest  1,115  in Aggressive Growth Allocation on May 1, 2025 and sell it today you would earn a total of  120.00  from holding Aggressive Growth Allocation or generate 10.76% return on investment over 90 days.

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

SentinelOne  vs.  Aggressive Growth Allocation

SentinelOne

Risk-Adjusted Performance

Very 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.

Aggressive Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aggressive Growth Allocation are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Aggressive Growth may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SentinelOne and Aggressive Growth

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

The idea behind SentinelOne and Aggressive Growth Allocation 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .