Correlation Between SentinelOne and Lufax Holding

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

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

Diversification Opportunities for SentinelOne and Lufax Holding

0.48

Correlation Coefficient

SentinelOne  Lufax Holding

Very weak diversification

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

Pair Corralation between SentinelOne and Lufax Holding

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Lufax Holding. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.12 times less risky than Lufax Holding. The stock trades about -0.02 of its potential returns per unit of risk. The Lufax Holding is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  296.00  in Lufax Holding on May 4, 2025 and sell it today you would lose (13.00) from holding Lufax Holding or give up 4.39% of portfolio value over 90 days.

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

SentinelOne  vs.  Lufax Holding

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.

Lufax Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lufax Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Lufax Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SentinelOne and Lufax Holding

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

The idea behind SentinelOne and Lufax Holding 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.