Correlation Between SentinelOne and Transport

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

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

Diversification Opportunities for SentinelOne and Transport

-0.25

Correlation Coefficient

SentinelOne  Transport

Very good diversification

The 3 months correlation between SentinelOne and Transport is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Transport and Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport and Industry 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport and Industry has no effect on the direction of SentinelOne i.e., SentinelOne and Transport go up and down completely randomly.

Pair Corralation between SentinelOne and Transport

Taking into account the 90-day investment horizon SentinelOne is expected to generate 4.72 times less return on investment than Transport. But when comparing it to its historical volatility, SentinelOne is 1.46 times less risky than Transport. It trades about 0.06 of its potential returns per unit of risk. Transport and Industry is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  189,000  in Transport and Industry on April 24, 2025 and sell it today you would earn a total of  87,000  from holding Transport and Industry or generate 46.03% return on investment over 90 days.

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

SentinelOne  vs.  Transport and Industry

SentinelOne

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SentinelOne are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SentinelOne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Transport and Industry

Risk-Adjusted Performance

Good

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

Pair Trading with SentinelOne and Transport

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

The idea behind SentinelOne and Transport and Industry 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.