Correlation Between SentinelOne and Pine Cliff

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

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

Diversification Opportunities for SentinelOne and Pine Cliff

-0.2

Correlation Coefficient

SentinelOne  Pine Cliff

Good diversification

The 3 months correlation between SentinelOne and Pine is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Pine Cliff Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pine Cliff Energy 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 Pine Cliff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pine Cliff Energy has no effect on the direction of SentinelOne i.e., SentinelOne and Pine Cliff go up and down completely randomly.

Pair Corralation between SentinelOne and Pine Cliff

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Pine Cliff. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.14 times less risky than Pine Cliff. The stock trades about -0.02 of its potential returns per unit of risk. The Pine Cliff Energy is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  52.00  in Pine Cliff Energy on May 3, 2025 and sell it today you would earn a total of  20.00  from holding Pine Cliff Energy or generate 38.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

SentinelOne  vs.  Pine Cliff Energy

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

Pine Cliff Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pine Cliff Energy are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Pine Cliff displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Pine Cliff

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

The idea behind SentinelOne and Pine Cliff Energy 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.