Correlation Between SentinelOne and Timothy Small-cap

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

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

Diversification Opportunities for SentinelOne and Timothy Small-cap

0.25

Correlation Coefficient

SentinelOne  Timothy Small-cap

Modest diversification

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

Pair Corralation between SentinelOne and Timothy Small-cap

Taking into account the 90-day investment horizon SentinelOne is expected to generate 2.56 times more return on investment than Timothy Small-cap. However, SentinelOne is 2.56 times more volatile than Timothy Small Cap Value. It trades about 0.0 of its potential returns per unit of risk. Timothy Small Cap Value is currently generating about -0.03 per unit of risk. If you would invest  1,772  in SentinelOne on July 16, 2025 and sell it today you would lose (57.00) from holding SentinelOne or give up 3.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

SentinelOne  vs.  Timothy Small Cap Value

SentinelOne

Risk-Adjusted Performance

Weakest

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Timothy Small Cap

Risk-Adjusted Performance

Weakest

Over the last 90 days Timothy Small Cap Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Timothy Small-cap 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 Timothy Small-cap

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

The idea behind SentinelOne and Timothy Small Cap 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.