Correlation Between SentinelOne and Loomis Sayles

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

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

Diversification Opportunities for SentinelOne and Loomis Sayles

0.0

Correlation Coefficient

SentinelOne  Loomis Sayles

Pay attention - limited upside

The 3 months correlation between SentinelOne and Loomis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Loomis Sayles Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Small 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Small has no effect on the direction of SentinelOne i.e., SentinelOne and Loomis Sayles go up and down completely randomly.

Pair Corralation between SentinelOne and Loomis Sayles

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Loomis Sayles. In addition to that, SentinelOne is 2.6 times more volatile than Loomis Sayles Small. It trades about -0.02 of its total potential returns per unit of risk. Loomis Sayles Small is currently generating about 0.12 per unit of volatility. If you would invest  2,070  in Loomis Sayles Small on May 4, 2025 and sell it today you would earn a total of  160.00  from holding Loomis Sayles Small or generate 7.73% return on investment over 90 days.

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

SentinelOne  vs.  Loomis Sayles Small

SentinelOne

Risk-Adjusted Performance

Very 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.

Loomis Sayles Small

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Small are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Loomis Sayles may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Loomis Sayles

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

The idea behind SentinelOne and Loomis Sayles Small 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.