Correlation Between SentinelOne and Moog

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

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

Diversification Opportunities for SentinelOne and Moog

0.2

Correlation Coefficient

SentinelOne  Moog

Modest diversification

The 3 months correlation between SentinelOne and Moog is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Moog Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moog Inc 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 Moog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moog Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Moog go up and down completely randomly.

Pair Corralation between SentinelOne and Moog

Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.4 times less return on investment than Moog. In addition to that, SentinelOne is 1.55 times more volatile than Moog Inc. It trades about 0.02 of its total potential returns per unit of risk. Moog Inc is currently generating about 0.14 per unit of volatility. If you would invest  16,928  in Moog Inc on May 1, 2025 and sell it today you would earn a total of  2,615  from holding Moog Inc or generate 15.45% return on investment over 90 days.

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

SentinelOne  vs.  Moog Inc

SentinelOne

Risk-Adjusted Performance

Very 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.

Moog Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moog Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Moog sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Moog

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

The idea behind SentinelOne and Moog Inc 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.