Correlation Between SentinelOne and Select International

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

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

Diversification Opportunities for SentinelOne and Select International

-0.51

Correlation Coefficient

SentinelOne  Select International

Excellent diversification

The 3 months correlation between SentinelOne and Select is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Select International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select International 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 Select International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select International has no effect on the direction of SentinelOne i.e., SentinelOne and Select International go up and down completely randomly.

Pair Corralation between SentinelOne and Select International

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Select International. In addition to that, SentinelOne is 4.34 times more volatile than Select International Equity. It trades about -0.09 of its total potential returns per unit of risk. Select International Equity is currently generating about 0.15 per unit of volatility. If you would invest  1,142  in Select International Equity on May 16, 2025 and sell it today you would earn a total of  72.00  from holding Select International Equity or generate 6.3% 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.  Select International Equity

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.

Select International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Select International Equity are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Select International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SentinelOne and Select International

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

The idea behind SentinelOne and Select International Equity 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.