Correlation Between SentinelOne and Keyence

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

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

Diversification Opportunities for SentinelOne and Keyence

0.48

Correlation Coefficient

SentinelOne  Keyence

Very weak diversification

The 3 months correlation between SentinelOne and Keyence is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence 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 Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of SentinelOne i.e., SentinelOne and Keyence go up and down completely randomly.

Pair Corralation between SentinelOne and Keyence

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.93 times more return on investment than Keyence. However, SentinelOne is 1.07 times less risky than Keyence. It trades about 0.02 of its potential returns per unit of risk. Keyence is currently generating about -0.05 per unit of risk. If you would invest  1,857  in SentinelOne on May 1, 2025 and sell it today you would earn a total of  12.00  from holding SentinelOne or generate 0.65% return on investment over 90 days.

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

SentinelOne  vs.  Keyence

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Keyence

Risk-Adjusted Performance

Very Weak

Over the last 90 days Keyence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with SentinelOne and Keyence

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

The idea behind SentinelOne and Keyence 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.