Correlation Between SentinelOne and Phunware

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

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

Diversification Opportunities for SentinelOne and Phunware

-0.03

Correlation Coefficient

SentinelOne  Phunware

Good diversification

The 3 months correlation between SentinelOne and Phunware is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware 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 Phunware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phunware has no effect on the direction of SentinelOne i.e., SentinelOne and Phunware go up and down completely randomly.

Pair Corralation between SentinelOne and Phunware

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.47 times less return on investment than Phunware. But when comparing it to its historical volatility, SentinelOne is 1.71 times less risky than Phunware. It trades about 0.02 of its potential returns per unit of risk. Phunware is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  297.00  in Phunware on May 1, 2025 and sell it today you would lose (6.00) from holding Phunware or give up 2.02% of portfolio value over 90 days.

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

SentinelOne  vs.  Phunware

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Phunware

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phunware are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Phunware is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Phunware

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

The idea behind SentinelOne and Phunware 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.