Correlation Between SentinelOne and SatixFy Communications

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

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

Diversification Opportunities for SentinelOne and SatixFy Communications

0.38

Correlation Coefficient

SentinelOne  SatixFy Communications

Weak diversification

The 3 months correlation between SentinelOne and SatixFy is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SatixFy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SatixFy Communications 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 SatixFy Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SatixFy Communications has no effect on the direction of SentinelOne i.e., SentinelOne and SatixFy Communications go up and down completely randomly.

Pair Corralation between SentinelOne and SatixFy Communications

Taking into account the 90-day investment horizon SentinelOne is expected to generate 72.25 times less return on investment than SatixFy Communications. But when comparing it to its historical volatility, SentinelOne is 2.49 times less risky than SatixFy Communications. It trades about 0.01 of its potential returns per unit of risk. SatixFy Communications is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  203.00  in SatixFy Communications on May 1, 2025 and sell it today you would earn a total of  93.00  from holding SatixFy Communications or generate 45.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	69.35%
Values	Daily Returns

SentinelOne  vs.  SatixFy Communications

SentinelOne

Risk-Adjusted Performance

Very Weak

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

SatixFy Communications

Risk-Adjusted Performance

Good

Over the last 90 days SatixFy Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain basic indicators, SatixFy Communications showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and SatixFy Communications

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

The idea behind SentinelOne and SatixFy Communications 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.