Correlation Between SentinelOne and Image Protect

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

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

Diversification Opportunities for SentinelOne and Image Protect

-0.04

Correlation Coefficient

SentinelOne  Image Protect

Good diversification

The 3 months correlation between SentinelOne and Image is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Image Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Protect 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 Image Protect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Protect has no effect on the direction of SentinelOne i.e., SentinelOne and Image Protect go up and down completely randomly.

Pair Corralation between SentinelOne and Image Protect

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Image Protect. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 64.12 times less risky than Image Protect. The stock trades about -0.05 of its potential returns per unit of risk. The Image Protect is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Image Protect on May 8, 2025 and sell it today you would lose (0.01) from holding Image Protect or give up 100.0% of portfolio value over 90 days.

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

SentinelOne  vs.  Image Protect

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 weak 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.

Image Protect

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Image Protect are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Image Protect disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Image Protect

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

The idea behind SentinelOne and Image Protect 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.