Correlation Between SentinelOne and Infrastructure Fund

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

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

Diversification Opportunities for SentinelOne and Infrastructure Fund

-0.34

Correlation Coefficient

SentinelOne  Infrastructure Fund

Very good diversification

The 3 months correlation between SentinelOne and Infrastructure is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Infrastructure Fund Institutio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastructure Fund 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 Infrastructure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastructure Fund has no effect on the direction of SentinelOne i.e., SentinelOne and Infrastructure Fund go up and down completely randomly.

Pair Corralation between SentinelOne and Infrastructure Fund

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Infrastructure Fund. In addition to that, SentinelOne is 10.7 times more volatile than Infrastructure Fund Institutional. It trades about -0.05 of its total potential returns per unit of risk. Infrastructure Fund Institutional is currently generating about 0.26 per unit of volatility. If you would invest  2,300  in Infrastructure Fund Institutional on May 8, 2025 and sell it today you would earn a total of  100.00  from holding Infrastructure Fund Institutional or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SentinelOne  vs.  Infrastructure Fund Institutio

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Infrastructure Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Infrastructure Fund Institutional are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Infrastructure Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Infrastructure Fund

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

The idea behind SentinelOne and Infrastructure Fund Institutional 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.