Correlation Between SentinelOne and Polaris Infrastructure

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

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

Diversification Opportunities for SentinelOne and Polaris Infrastructure

-0.39

Correlation Coefficient

SentinelOne  Polaris Infrastructure

Very good diversification

The 3 months correlation between SentinelOne and Polaris is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Polaris Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Infrastructure 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 Polaris Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Infrastructure has no effect on the direction of SentinelOne i.e., SentinelOne and Polaris Infrastructure go up and down completely randomly.

Pair Corralation between SentinelOne and Polaris Infrastructure

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Polaris Infrastructure. In addition to that, SentinelOne is 2.33 times more volatile than Polaris Infrastructure. It trades about 0.0 of its total potential returns per unit of risk. Polaris Infrastructure is currently generating about 0.14 per unit of volatility. If you would invest  1,126  in Polaris Infrastructure on May 3, 2025 and sell it today you would earn a total of  118.00  from holding Polaris Infrastructure or generate 10.48% return on investment over 90 days.

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

SentinelOne  vs.  Polaris Infrastructure

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

Polaris Infrastructure

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Polaris Infrastructure are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Polaris Infrastructure may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Polaris Infrastructure

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

The idea behind SentinelOne and Polaris Infrastructure 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 Global Correlations module to find global opportunities by holding instruments from different markets.