Correlation Between SentinelOne and CSSC Offshore

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

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

Diversification Opportunities for SentinelOne and CSSC Offshore

-0.43

Correlation Coefficient

SentinelOne  CSSC Offshore

Very good diversification

The 3 months correlation between SentinelOne and CSSC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of SentinelOne i.e., SentinelOne and CSSC Offshore go up and down completely randomly.

Pair Corralation between SentinelOne and CSSC Offshore

Taking into account the 90-day investment horizon SentinelOne is expected to generate 22.94 times more return on investment than CSSC Offshore. However, SentinelOne is 22.94 times more volatile than CSSC Offshore Marine. It trades about 0.04 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.13 per unit of risk. If you would invest  1,731  in SentinelOne on April 23, 2025 and sell it today you would earn a total of  70.00  from holding SentinelOne or generate 4.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

SentinelOne  vs.  CSSC Offshore Marine

SentinelOne

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) 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.

CSSC Offshore Marine

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CSSC Offshore Marine are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CSSC Offshore is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SentinelOne and CSSC Offshore

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

The idea behind SentinelOne and CSSC Offshore Marine 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.

Check out your portfolio center.

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.