Correlation Between SentinelOne and Seaboard

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

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

Diversification Opportunities for SentinelOne and Seaboard

-0.59

Correlation Coefficient

SentinelOne  Seaboard

Excellent diversification

The 3 months correlation between SentinelOne and Seaboard is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard 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 Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of SentinelOne i.e., SentinelOne and Seaboard go up and down completely randomly.

Pair Corralation between SentinelOne and Seaboard

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Seaboard. In addition to that, SentinelOne is 1.75 times more volatile than Seaboard. It trades about -0.06 of its total potential returns per unit of risk. Seaboard is currently generating about 0.37 per unit of volatility. If you would invest  245,812  in Seaboard on May 21, 2025 and sell it today you would earn a total of  112,006  from holding Seaboard or generate 45.57% 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.  Seaboard

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.

Seaboard

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Seaboard are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, Seaboard sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Seaboard

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

The idea behind SentinelOne and Seaboard 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.