Correlation Between SentinelOne and Petrogress

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

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

Diversification Opportunities for SentinelOne and Petrogress

-0.4

Correlation Coefficient

SentinelOne  Petrogress

Very good diversification

The 3 months correlation between SentinelOne and Petrogress is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Petrogress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrogress 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 Petrogress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrogress has no effect on the direction of SentinelOne i.e., SentinelOne and Petrogress go up and down completely randomly.

Pair Corralation between SentinelOne and Petrogress

Taking into account the 90-day investment horizon SentinelOne is expected to generate 11.02 times less return on investment than Petrogress. But when comparing it to its historical volatility, SentinelOne is 8.07 times less risky than Petrogress. It trades about 0.06 of its potential returns per unit of risk. Petrogress is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Petrogress on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Petrogress or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.22%
Values	Daily Returns

SentinelOne  vs.  Petrogress

SentinelOne

Risk-Adjusted Performance

0 of 100

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

Petrogress

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Petrogress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SentinelOne and Petrogress

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

The idea behind SentinelOne and Petrogress 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.