Correlation Between SentinelOne and Chainlink

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

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

Diversification Opportunities for SentinelOne and Chainlink

-0.34

Correlation Coefficient

SentinelOne  Chainlink

Very good diversification

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

Pair Corralation between SentinelOne and Chainlink

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.53 times more return on investment than Chainlink. However, SentinelOne is 1.9 times less risky than Chainlink. It trades about 0.02 of its potential returns per unit of risk. Chainlink is currently generating about -0.03 per unit of risk. If you would invest  1,770  in SentinelOne on July 4, 2025 and sell it today you would earn a total of  7.00  from holding SentinelOne or generate 0.4% return on investment over 90 days.

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

SentinelOne  vs.  Chainlink

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 comparatively stable basic indicators, SentinelOne is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Chainlink

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Chainlink exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Chainlink

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

The idea behind SentinelOne and Chainlink 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.