Correlation Between SentinelOne and Trust Stamp

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

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

Diversification Opportunities for SentinelOne and Trust Stamp

-0.03

Correlation Coefficient

SentinelOne  Trust Stamp

Good diversification

The 3 months correlation between SentinelOne and Trust is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Trust Stamp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Stamp 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 Trust Stamp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Stamp has no effect on the direction of SentinelOne i.e., SentinelOne and Trust Stamp go up and down completely randomly.

Pair Corralation between SentinelOne and Trust Stamp

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Trust Stamp. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 2.39 times less risky than Trust Stamp. The stock trades about 0.0 of its potential returns per unit of risk. The Trust Stamp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  204.00  in Trust Stamp on May 2, 2025 and sell it today you would earn a total of  74.00  from holding Trust Stamp or generate 36.27% return on investment over 90 days.

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

SentinelOne  vs.  Trust Stamp

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Trust Stamp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trust Stamp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Trust Stamp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Trust Stamp

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

The idea behind SentinelOne and Trust Stamp 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 Valuation module to check real value of public entities based on technical and fundamental data.