Correlation Between SentinelOne and Thrivent Large

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

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

Diversification Opportunities for SentinelOne and Thrivent Large

-0.26

Correlation Coefficient

SentinelOne  Thrivent Large

Very good diversification

The 3 months correlation between SentinelOne and Thrivent is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap 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 Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of SentinelOne i.e., SentinelOne and Thrivent Large go up and down completely randomly.

Pair Corralation between SentinelOne and Thrivent Large

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Thrivent Large. In addition to that, SentinelOne is 2.69 times more volatile than Thrivent Large Cap. It trades about -0.02 of its total potential returns per unit of risk. Thrivent Large Cap is currently generating about 0.25 per unit of volatility. If you would invest  2,022  in Thrivent Large Cap on May 5, 2025 and sell it today you would earn a total of  338.00  from holding Thrivent Large Cap or generate 16.72% return on investment over 90 days.

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

SentinelOne  vs.  Thrivent Large Cap

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.

Thrivent Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Thrivent Large showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SentinelOne and Thrivent Large

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

The idea behind SentinelOne and Thrivent Large Cap 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.