Correlation Between SentinelOne and Performance Trust

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

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

Diversification Opportunities for SentinelOne and Performance Trust

-0.41

Correlation Coefficient

SentinelOne  Performance Trust

Very good diversification

The 3 months correlation between SentinelOne and Performance is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Performance Trust Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Trust 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 Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Trust has no effect on the direction of SentinelOne i.e., SentinelOne and Performance Trust go up and down completely randomly.

Pair Corralation between SentinelOne and Performance Trust

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Performance Trust. In addition to that, SentinelOne is 18.57 times more volatile than Performance Trust Municipal. It trades about -0.09 of its total potential returns per unit of risk. Performance Trust Municipal is currently generating about 0.04 per unit of volatility. If you would invest  2,192  in Performance Trust Municipal on May 17, 2025 and sell it today you would earn a total of  8.00  from holding Performance Trust Municipal or generate 0.36% 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 Trust Municipal

SentinelOne

Risk-Adjusted Performance

Weakest

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

Performance Trust

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Trust Municipal are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Performance Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Performance Trust

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

The idea behind SentinelOne and Performance Trust Municipal 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.