Correlation Between SentinelOne and Simt Us

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

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

Diversification Opportunities for SentinelOne and Simt Us

-0.01

Correlation Coefficient

SentinelOne  Simt Us

Good diversification

The 3 months correlation between SentinelOne and Simt is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Simt Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Managed Volatility 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 Simt Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Managed Volatility has no effect on the direction of SentinelOne i.e., SentinelOne and Simt Us go up and down completely randomly.

Pair Corralation between SentinelOne and Simt Us

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Simt Us. In addition to that, SentinelOne is 5.04 times more volatile than Simt Managed Volatility. It trades about -0.07 of its total potential returns per unit of risk. Simt Managed Volatility is currently generating about 0.05 per unit of volatility. If you would invest  1,469  in Simt Managed Volatility on May 20, 2025 and sell it today you would earn a total of  25.00  from holding Simt Managed Volatility or generate 1.7% return on investment over 90 days.

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

SentinelOne  vs.  Simt Managed Volatility

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.

Simt Managed Volatility

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Managed Volatility are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Simt Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Simt Us

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

The idea behind SentinelOne and Simt Managed Volatility 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.