Correlation Between SentinelOne and Itron

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

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

Diversification Opportunities for SentinelOne and Itron

-0.34

Correlation Coefficient

SentinelOne  Itron

Very good diversification

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

Pair Corralation between SentinelOne and Itron

Taking into account the 90-day investment horizon SentinelOne is expected to generate 13.86 times less return on investment than Itron. In addition to that, SentinelOne is 2.39 times more volatile than Itron Inc. It trades about 0.01 of its total potential returns per unit of risk. Itron Inc is currently generating about 0.36 per unit of volatility. If you would invest  10,823  in Itron Inc on May 2, 2025 and sell it today you would earn a total of  3,019  from holding Itron Inc or generate 27.89% return on investment over 90 days.

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

SentinelOne  vs.  Itron Inc

SentinelOne

Risk-Adjusted Performance

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.

Itron Inc

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Itron Inc are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Itron demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Itron

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

The idea behind SentinelOne and Itron Inc 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.