Correlation Between SentinelOne and First Eagle

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

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

Diversification Opportunities for SentinelOne and First Eagle

-0.56

Correlation Coefficient

SentinelOne  First Eagle

Excellent diversification

The 3 months correlation between SentinelOne and First is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of SentinelOne i.e., SentinelOne and First Eagle go up and down completely randomly.

Pair Corralation between SentinelOne and First Eagle

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.39 times less return on investment than First Eagle. In addition to that, SentinelOne is 1.46 times more volatile than First Eagle Gold. It trades about 0.02 of its total potential returns per unit of risk. First Eagle Gold is currently generating about 0.07 per unit of volatility. If you would invest  3,534  in First Eagle Gold on April 30, 2025 and sell it today you would earn a total of  248.00  from holding First Eagle Gold or generate 7.02% 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.  First Eagle Gold

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.

First Eagle Gold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Gold are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SentinelOne and First Eagle

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

The idea behind SentinelOne and First Eagle Gold 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.