Correlation Between SentinelOne and ProShares Ultra

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

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

Diversification Opportunities for SentinelOne and ProShares Ultra

-0.33

Correlation Coefficient

SentinelOne  ProShares Ultra

Very good diversification

The 3 months correlation between SentinelOne and ProShares is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and ProShares Ultra QQQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra QQQ 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra QQQ has no effect on the direction of SentinelOne i.e., SentinelOne and ProShares Ultra go up and down completely randomly.

Pair Corralation between SentinelOne and ProShares Ultra

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the ProShares Ultra. In addition to that, SentinelOne is 1.91 times more volatile than ProShares Ultra QQQ. It trades about -0.07 of its total potential returns per unit of risk. ProShares Ultra QQQ is currently generating about 0.2 per unit of volatility. If you would invest  10,533  in ProShares Ultra QQQ on May 20, 2025 and sell it today you would earn a total of  2,225  from holding ProShares Ultra QQQ or generate 21.12% return on investment over 90 days.

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

SentinelOne  vs.  ProShares Ultra QQQ

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 uncertain 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.

ProShares Ultra QQQ

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra QQQ are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, ProShares Ultra exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and ProShares Ultra

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

The idea behind SentinelOne and ProShares Ultra QQQ 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.