Correlation Between SentinelOne and Emeren

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

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

Diversification Opportunities for SentinelOne and Emeren

-0.46

Correlation Coefficient

SentinelOne  Emeren

Very good diversification

The 3 months correlation between SentinelOne and Emeren is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of SentinelOne i.e., SentinelOne and Emeren go up and down completely randomly.

Pair Corralation between SentinelOne and Emeren

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Emeren. In addition to that, SentinelOne is 1.02 times more volatile than Emeren Group. It trades about -0.08 of its total potential returns per unit of risk. Emeren Group is currently generating about 0.13 per unit of volatility. If you would invest  153.00  in Emeren Group on May 19, 2025 and sell it today you would earn a total of  35.00  from holding Emeren Group or generate 22.88% 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.  Emeren Group

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.

Emeren Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Emeren Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Emeren disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Emeren

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

The idea behind SentinelOne and Emeren Group 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.