Correlation Between SentinelOne and Rational Dividend

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

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

Diversification Opportunities for SentinelOne and Rational Dividend

-0.17

Correlation Coefficient

SentinelOne  Rational Dividend

Good diversification

The 3 months correlation between SentinelOne and Rational is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Rational Dividend Capture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Dividend Capture 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 Rational Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Dividend Capture has no effect on the direction of SentinelOne i.e., SentinelOne and Rational Dividend go up and down completely randomly.

Pair Corralation between SentinelOne and Rational Dividend

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Rational Dividend. In addition to that, SentinelOne is 4.63 times more volatile than Rational Dividend Capture. It trades about 0.0 of its total potential returns per unit of risk. Rational Dividend Capture is currently generating about 0.23 per unit of volatility. If you would invest  940.00  in Rational Dividend Capture on May 3, 2025 and sell it today you would earn a total of  81.00  from holding Rational Dividend Capture or generate 8.62% return on investment over 90 days.

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

SentinelOne  vs.  Rational Dividend Capture

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Rational Dividend Capture

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rational Dividend Capture are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Rational Dividend may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Rational Dividend

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

The idea behind SentinelOne and Rational Dividend Capture 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.