Correlation Between SentinelOne and Progress Software

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

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

Diversification Opportunities for SentinelOne and Progress Software

0.15

Correlation Coefficient

SentinelOne  Progress Software

Average diversification

The 3 months correlation between SentinelOne and Progress is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Progress Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progress Software 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 Progress Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progress Software has no effect on the direction of SentinelOne i.e., SentinelOne and Progress Software go up and down completely randomly.

Pair Corralation between SentinelOne and Progress Software

Taking into account the 90-day investment horizon SentinelOne is expected to generate 1.2 times more return on investment than Progress Software. However, SentinelOne is 1.2 times more volatile than Progress Software. It trades about 0.05 of its potential returns per unit of risk. Progress Software is currently generating about -0.12 per unit of risk. If you would invest  1,842  in SentinelOne on April 25, 2025 and sell it today you would earn a total of  107.00  from holding SentinelOne or generate 5.81% return on investment over 90 days.

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

SentinelOne  vs.  Progress Software

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Progress Software

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SentinelOne and Progress Software

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

The idea behind SentinelOne and Progress Software 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.