Correlation Between SentinelOne and Federated Strategic

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

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

Diversification Opportunities for SentinelOne and Federated Strategic

-0.21

Correlation Coefficient

SentinelOne  Federated Strategic

Very good diversification

The 3 months correlation between SentinelOne and Federated is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of SentinelOne i.e., SentinelOne and Federated Strategic go up and down completely randomly.

Pair Corralation between SentinelOne and Federated Strategic

Taking into account the 90-day investment horizon SentinelOne is expected to generate 6.16 times less return on investment than Federated Strategic. In addition to that, SentinelOne is 4.05 times more volatile than Federated Strategic Value. It trades about 0.01 of its total potential returns per unit of risk. Federated Strategic Value is currently generating about 0.13 per unit of volatility. If you would invest  600.00  in Federated Strategic Value on May 1, 2025 and sell it today you would earn a total of  33.00  from holding Federated Strategic Value or generate 5.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SentinelOne  vs.  Federated Strategic Value

SentinelOne

Risk-Adjusted Performance

Very Weak

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.

Federated Strategic Value

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Strategic Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Federated Strategic 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 Federated Strategic

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

The idea behind SentinelOne and Federated Strategic Value 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.