Correlation Between SentinelOne and Catalyst/millburn

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

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

Diversification Opportunities for SentinelOne and Catalyst/millburn

0.08

Correlation Coefficient

SentinelOne  Catalyst/millburn

Significant diversification

The 3 months correlation between SentinelOne and Catalyst/millburn is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of SentinelOne i.e., SentinelOne and Catalyst/millburn go up and down completely randomly.

Pair Corralation between SentinelOne and Catalyst/millburn

Taking into account the 90-day investment horizon SentinelOne is expected to generate 5.09 times more return on investment than Catalyst/millburn. However, SentinelOne is 5.09 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.06 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.25 per unit of risk. If you would invest  1,798  in SentinelOne on April 24, 2025 and sell it today you would earn a total of  127.00  from holding SentinelOne or generate 7.06% return on investment over 90 days.

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

SentinelOne  vs.  Catalystmillburn Hedge Strateg

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Catalystmillburn Hedge

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmillburn Hedge Strategy are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalyst/millburn may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SentinelOne and Catalyst/millburn

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

The idea behind SentinelOne and Catalystmillburn Hedge Strategy 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.