Correlation Between SentinelOne and Northern Small

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

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

Diversification Opportunities for SentinelOne and Northern Small

-0.1

Correlation Coefficient

SentinelOne  Northern Small

Good diversification

The 3 months correlation between SentinelOne and Northern is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Northern Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Small Cap 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 Northern Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Small Cap has no effect on the direction of SentinelOne i.e., SentinelOne and Northern Small go up and down completely randomly.

Pair Corralation between SentinelOne and Northern Small

Taking into account the 90-day investment horizon SentinelOne is expected to generate 12.67 times less return on investment than Northern Small. In addition to that, SentinelOne is 2.32 times more volatile than Northern Small Cap. It trades about 0.01 of its total potential returns per unit of risk. Northern Small Cap is currently generating about 0.16 per unit of volatility. If you would invest  1,185  in Northern Small Cap on May 1, 2025 and sell it today you would earn a total of  136.00  from holding Northern Small Cap or generate 11.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SentinelOne  vs.  Northern Small Cap

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.

Northern Small Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Northern Small Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Northern Small may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SentinelOne and Northern Small

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

The idea behind SentinelOne and Northern Small Cap 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..