Correlation Between SentinelOne and Tucows

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

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

Diversification Opportunities for SentinelOne and Tucows

-0.09

Correlation Coefficient

SentinelOne  Tucows

Good diversification

The 3 months correlation between SentinelOne and Tucows is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Tucows Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tucows Inc 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 Tucows. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tucows Inc has no effect on the direction of SentinelOne i.e., SentinelOne and Tucows go up and down completely randomly.

Pair Corralation between SentinelOne and Tucows

Taking into account the 90-day investment horizon SentinelOne is expected to generate 3.38 times less return on investment than Tucows. In addition to that, SentinelOne is 1.11 times more volatile than Tucows Inc. It trades about 0.05 of its total potential returns per unit of risk. Tucows Inc is currently generating about 0.18 per unit of volatility. If you would invest  2,286  in Tucows Inc on April 25, 2025 and sell it today you would earn a total of  650.00  from holding Tucows Inc or generate 28.43% return on investment over 90 days.

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

SentinelOne  vs.  Tucows Inc

SentinelOne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Tucows Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tucows Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Tucows displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Tucows

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

The idea behind SentinelOne and Tucows Inc 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .