Correlation Between SentinelOne and Formidable Fortress

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

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

Diversification Opportunities for SentinelOne and Formidable Fortress

0.15

Correlation Coefficient

SentinelOne  Formidable Fortress

Average diversification

The 3 months correlation between SentinelOne and Formidable is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Formidable Fortress ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formidable Fortress ETF 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 Formidable Fortress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formidable Fortress ETF has no effect on the direction of SentinelOne i.e., SentinelOne and Formidable Fortress go up and down completely randomly.

Pair Corralation between SentinelOne and Formidable Fortress

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.29 times less return on investment than Formidable Fortress. In addition to that, SentinelOne is 3.61 times more volatile than Formidable Fortress ETF. It trades about 0.04 of its total potential returns per unit of risk. Formidable Fortress ETF is currently generating about 0.18 per unit of volatility. If you would invest  2,800  in Formidable Fortress ETF on April 29, 2025 and sell it today you would earn a total of  236.00  from holding Formidable Fortress ETF or generate 8.43% return on investment over 90 days.

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

SentinelOne  vs.  Formidable Fortress ETF

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Formidable Fortress ETF

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Formidable Fortress ETF are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Formidable Fortress may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SentinelOne and Formidable Fortress

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

The idea behind SentinelOne and Formidable Fortress ETF 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.