Correlation Between SentinelOne and Neonode

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

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

Diversification Opportunities for SentinelOne and Neonode

-0.19

Correlation Coefficient

SentinelOne  Neonode

Good diversification

The 3 months correlation between SentinelOne and Neonode is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Neonode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neonode 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 Neonode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neonode has no effect on the direction of SentinelOne i.e., SentinelOne and Neonode go up and down completely randomly.

Pair Corralation between SentinelOne and Neonode

Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.27 times more return on investment than Neonode. However, SentinelOne is 3.66 times less risky than Neonode. It trades about 0.01 of its potential returns per unit of risk. Neonode is currently generating about -0.19 per unit of risk. If you would invest  1,818  in SentinelOne on July 1, 2025 and sell it today you would lose (9.00) from holding SentinelOne or give up 0.5% of portfolio value over 90 days.

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

SentinelOne  vs.  Neonode

SentinelOne

Risk-Adjusted Performance

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Neonode

Risk-Adjusted Performance

Weakest

Over the last 90 days Neonode has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in October 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with SentinelOne and Neonode

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

The idea behind SentinelOne and Neonode 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.