Correlation Between SentinelOne and RCM Technologies

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

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

Diversification Opportunities for SentinelOne and RCM Technologies

0.1

Correlation Coefficient

SentinelOne  RCM Technologies

Average diversification

The 3 months correlation between SentinelOne and RCM is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and RCM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCM Technologies 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 RCM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCM Technologies has no effect on the direction of SentinelOne i.e., SentinelOne and RCM Technologies go up and down completely randomly.

Pair Corralation between SentinelOne and RCM Technologies

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the RCM Technologies. In addition to that, SentinelOne is 1.43 times more volatile than RCM Technologies. It trades about -0.06 of its total potential returns per unit of risk. RCM Technologies is currently generating about 0.07 per unit of volatility. If you would invest  2,246  in RCM Technologies on May 21, 2025 and sell it today you would earn a total of  177.00  from holding RCM Technologies or generate 7.88% return on investment over 90 days.

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

SentinelOne  vs.  RCM Technologies

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 latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

RCM Technologies

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in RCM Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, RCM Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and RCM Technologies

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

The idea behind SentinelOne and RCM Technologies 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.