Correlation Between SentinelOne and FirstService Corp

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

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

Diversification Opportunities for SentinelOne and FirstService Corp

0.06

Correlation Coefficient

SentinelOne  FirstService Corp

Significant diversification

The 3 months correlation between SentinelOne and FirstService is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and FirstService Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstService 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 FirstService Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstService Corp has no effect on the direction of SentinelOne i.e., SentinelOne and FirstService Corp go up and down completely randomly.

Pair Corralation between SentinelOne and FirstService Corp

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.52 times more return on investment than FirstService Corp. However, SentinelOne is 2.52 times more volatile than FirstService Corp. It trades about 0.06 of its potential returns per unit of risk. FirstService Corp is currently generating about 0.07 per unit of risk. If you would invest  1,798  in SentinelOne on April 24, 2025 and sell it today you would earn a total of  151.00  from holding SentinelOne or generate 8.4% return on investment over 90 days.

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

SentinelOne  vs.  FirstService Corp

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

FirstService Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FirstService Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, FirstService Corp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with SentinelOne and FirstService Corp

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

The idea behind SentinelOne and FirstService 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.