Correlation Between SentinelOne and Gateway Equity

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

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

Diversification Opportunities for SentinelOne and Gateway Equity

-0.2

Correlation Coefficient

SentinelOne  Gateway Equity

Good diversification

The 3 months correlation between SentinelOne and Gateway is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Gateway Equity Call in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Equity Call 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 Gateway Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Equity Call has no effect on the direction of SentinelOne i.e., SentinelOne and Gateway Equity go up and down completely randomly.

Pair Corralation between SentinelOne and Gateway Equity

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.47 times less return on investment than Gateway Equity. In addition to that, SentinelOne is 7.07 times more volatile than Gateway Equity Call. It trades about 0.02 of its total potential returns per unit of risk. Gateway Equity Call is currently generating about 0.36 per unit of volatility. If you would invest  1,895  in Gateway Equity Call on May 1, 2025 and sell it today you would earn a total of  169.00  from holding Gateway Equity Call or generate 8.92% return on investment over 90 days.

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

SentinelOne  vs.  Gateway Equity Call

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.

Gateway Equity Call

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gateway Equity Call are ranked lower than 28 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gateway Equity may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SentinelOne and Gateway Equity

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

The idea behind SentinelOne and Gateway Equity Call 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.