Correlation Between SentinelOne and Performance Shipping

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

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

Diversification Opportunities for SentinelOne and Performance Shipping

-0.42

Correlation Coefficient

SentinelOne  Performance Shipping

Very good diversification

The 3 months correlation between SentinelOne and Performance is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Performance Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Shipping 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 Performance Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Shipping has no effect on the direction of SentinelOne i.e., SentinelOne and Performance Shipping go up and down completely randomly.

Pair Corralation between SentinelOne and Performance Shipping

Taking into account the 90-day investment horizon SentinelOne is expected to generate 9.92 times less return on investment than Performance Shipping. But when comparing it to its historical volatility, SentinelOne is 1.44 times less risky than Performance Shipping. It trades about 0.02 of its potential returns per unit of risk. Performance Shipping is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  134.00  in Performance Shipping on April 30, 2025 and sell it today you would earn a total of  43.00  from holding Performance Shipping or generate 32.09% return on investment over 90 days.

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

SentinelOne  vs.  Performance Shipping

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.

Performance Shipping

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Shipping are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Performance Shipping reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Performance Shipping

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

The idea behind SentinelOne and Performance Shipping 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.