Correlation Between SentinelOne and Powercell Sweden

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

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

Diversification Opportunities for SentinelOne and Powercell Sweden

-0.52

Correlation Coefficient

SentinelOne  Powercell Sweden

Excellent diversification

The 3 months correlation between SentinelOne and Powercell is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden 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 Powercell Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powercell Sweden has no effect on the direction of SentinelOne i.e., SentinelOne and Powercell Sweden go up and down completely randomly.

Pair Corralation between SentinelOne and Powercell Sweden

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Powercell Sweden. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 2.31 times less risky than Powercell Sweden. The stock trades about -0.05 of its potential returns per unit of risk. The Powercell Sweden is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,600  in Powercell Sweden on September 2, 2025 and sell it today you would earn a total of  1,398  from holding Powercell Sweden or generate 53.77% return on investment over 90 days.

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

SentinelOne  vs.  Powercell Sweden

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Powercell Sweden

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Powercell Sweden are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Powercell Sweden unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Powercell Sweden

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

The idea behind SentinelOne and Powercell Sweden 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.