Correlation Between SentinelOne and Security First

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

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

Diversification Opportunities for SentinelOne and Security First

-0.11

Correlation Coefficient

SentinelOne  Security First

Good diversification

The 3 months correlation between SentinelOne and Security is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Security First Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security First Intl 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 Security First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security First Intl has no effect on the direction of SentinelOne i.e., SentinelOne and Security First go up and down completely randomly.

Pair Corralation between SentinelOne and Security First

Taking into account the 90-day investment horizon SentinelOne is expected to generate 18.95 times less return on investment than Security First. But when comparing it to its historical volatility, SentinelOne is 5.07 times less risky than Security First. It trades about 0.02 of its potential returns per unit of risk. Security First Intl is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Security First Intl on May 1, 2025 and sell it today you would earn a total of  0.00  from holding Security First Intl or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SentinelOne  vs.  Security First Intl

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Security First Intl

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Security First Intl are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, Security First reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Security First

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

The idea behind SentinelOne and Security First Intl 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.