Correlation Between SentinelOne and Prudential Financial

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

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

Diversification Opportunities for SentinelOne and Prudential Financial

0.01

Correlation Coefficient

SentinelOne  Prudential Financial

Significant diversification

The 3 months correlation between SentinelOne and Prudential is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Prudential Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Financial 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 Prudential Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Financial has no effect on the direction of SentinelOne i.e., SentinelOne and Prudential Financial go up and down completely randomly.

Pair Corralation between SentinelOne and Prudential Financial

Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.78 times less return on investment than Prudential Financial. In addition to that, SentinelOne is 2.94 times more volatile than Prudential Financial Services. It trades about 0.01 of its total potential returns per unit of risk. Prudential Financial Services is currently generating about 0.15 per unit of volatility. If you would invest  2,383  in Prudential Financial Services on May 2, 2025 and sell it today you would earn a total of  208.00  from holding Prudential Financial Services or generate 8.73% return on investment over 90 days.

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

SentinelOne  vs.  Prudential Financial Services

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

Prudential Financial

Risk-Adjusted Performance

Good

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

Pair Trading with SentinelOne and Prudential Financial

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

The idea behind SentinelOne and Prudential Financial Services 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 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.