Correlation Between SentinelOne and Southern

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

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

Diversification Opportunities for SentinelOne and Southern

-0.14

Correlation Coefficient

SentinelOne  Southern

Good diversification

The 3 months correlation between SentinelOne and Southern is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Southern Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern 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 Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern has no effect on the direction of SentinelOne i.e., SentinelOne and Southern go up and down completely randomly.

Pair Corralation between SentinelOne and Southern

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Southern. In addition to that, SentinelOne is 3.96 times more volatile than Southern Company. It trades about 0.0 of its total potential returns per unit of risk. Southern Company is currently generating about 0.1 per unit of volatility. If you would invest  9,124  in Southern Company on July 9, 2025 and sell it today you would earn a total of  425.00  from holding Southern Company or generate 4.66% return on investment over 90 days.

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

SentinelOne  vs.  Southern Company

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 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.

Southern

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Southern Company are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Southern is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Southern

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

The idea behind SentinelOne and Southern Company 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.