Correlation Between SentinelOne and Guidepath Growth

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

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

Diversification Opportunities for SentinelOne and Guidepath Growth

0.09

Correlation Coefficient

SentinelOne  Guidepath Growth

Significant diversification

The 3 months correlation between SentinelOne and Guidepath is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Guidepath Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Growth All 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 Guidepath Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Growth All has no effect on the direction of SentinelOne i.e., SentinelOne and Guidepath Growth go up and down completely randomly.

Pair Corralation between SentinelOne and Guidepath Growth

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.49 times less return on investment than Guidepath Growth. In addition to that, SentinelOne is 3.33 times more volatile than Guidepath Growth Allocation. It trades about 0.08 of its total potential returns per unit of risk. Guidepath Growth Allocation is currently generating about 0.37 per unit of volatility. If you would invest  1,640  in Guidepath Growth Allocation on April 22, 2025 and sell it today you would earn a total of  303.00  from holding Guidepath Growth Allocation or generate 18.48% return on investment over 90 days.

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

SentinelOne  vs.  Guidepath Growth Allocation

SentinelOne

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 5 (%) 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.

Guidepath Growth All

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Growth Allocation are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Guidepath Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Guidepath Growth

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

The idea behind SentinelOne and Guidepath 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.