Correlation Between SentinelOne and Spring Valley

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

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

Diversification Opportunities for SentinelOne and Spring Valley

0.1

Correlation Coefficient

SentinelOne  Spring Valley

Average diversification

The 3 months correlation between SentinelOne and Spring is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Spring Valley Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Valley Acquisition 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 Spring Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Valley Acquisition has no effect on the direction of SentinelOne i.e., SentinelOne and Spring Valley go up and down completely randomly.

Pair Corralation between SentinelOne and Spring Valley

Taking into account the 90-day investment horizon SentinelOne is expected to generate 24.98 times less return on investment than Spring Valley. But when comparing it to its historical volatility, SentinelOne is 5.93 times less risky than Spring Valley. It trades about 0.04 of its potential returns per unit of risk. Spring Valley Acquisition is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  7.45  in Spring Valley Acquisition on April 29, 2025 and sell it today you would earn a total of  6.54  from holding Spring Valley Acquisition or generate 87.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	74.6%
Values	Daily Returns

SentinelOne  vs.  Spring Valley Acquisition

SentinelOne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 2 (%) 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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Spring Valley Acquisition

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Spring Valley Acquisition are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Spring Valley reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Spring Valley

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

The idea behind SentinelOne and Spring Valley Acquisition 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.

Check out your portfolio center.

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.