Correlation Between SentinelOne and Invictus Energy

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

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

Diversification Opportunities for SentinelOne and Invictus Energy

0.06

Correlation Coefficient

SentinelOne  Invictus Energy

Significant diversification

The 3 months correlation between SentinelOne and Invictus is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Invictus Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invictus Energy 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 Invictus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invictus Energy has no effect on the direction of SentinelOne i.e., SentinelOne and Invictus Energy go up and down completely randomly.

Pair Corralation between SentinelOne and Invictus Energy

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Invictus Energy. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 2.38 times less risky than Invictus Energy. The stock trades about -0.09 of its potential returns per unit of risk. The Invictus Energy Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3.56  in Invictus Energy Limited on May 17, 2025 and sell it today you would earn a total of  0.14  from holding Invictus Energy Limited or generate 3.93% return on investment over 90 days.

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

SentinelOne  vs.  Invictus Energy Limited

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Invictus Energy

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Invictus Energy Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Invictus Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Invictus Energy

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

The idea behind SentinelOne and Invictus Energy Limited 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.